Circle plans to only support Ethereum PoS chain after Merge is complete

On Tuesday, Circle, the issuer of the USD Coin (USDC) stablecoin, pledged its full help for the transition of Ethereum to a proof-of-stake, or PoS, blockchain after the much-anticipated Merge improve. The agency views the Merge as an necessary milestone within the scaling of the Ethereum ecosystem, writing:

“USDC has grow to be a core constructing block for Ethereum DeFi innovation. It has facilitated the adoption of L2 options and helped broaden the set of use instances that as we speak depend on Ethereum’s huge suite of capabilities. We perceive the accountability now we have for the Ethereum ecosystem and companies, builders and finish customers that rely on USDC, and we intend to do the suitable factor.”

At present, USDC is each the most important dollar-backed stablecoin issued on Ethereum and the most important ERC-20 asset total, with over $45 billion in market capitalization residing within the ecosystem on the time of publication. Its reserves are audited and held at U.S. monetary establishments comparable to BlackRock. 

Not like others, Circle continued that it doesn’t count on any points because the Ethereum blockchain begins its transition, stating:

“We don’t anticipate disruptions to USDC on-chain capabilities nor to our absolutely automated issuance and redemption companies. Circle’s testing surroundings is linked to the Goerli Ethereum testnet, and we’ll monitor carefully because it merges with Prater within the coming days.”

The corporate is following swimsuit alongside an rising variety of companies that vouch to transition to Ethereum’s PoS blockchain upon finishing the Merge. The day prior, Chainlink mentioned it might not help any proof-of-work forks after the improve. As a result of proximity of the improve, Ethereum layer-2 resolution Optimism has seen its token skyrocket by over 300% as a result of Merge hypothesis.