Ethereum-based Layer 2 blockchain protocol is set to welcome USDC stablecoin following a strategic partnership with Circle, the blockchain start-up behind the token issuance. As Circle announced, the USDC that will be launched will be native to the Optimism ecosystem and can be considered the official format of the stablecoin.
The launch of USDC on Optimism is a step in the right direction for both the scaling solution and Circle, as both protocols have an inherent community and user base that will benefit from the broad-based liquidity that is set to be ushered in across the board.
Just as it is renowned for, Circle's USDC integration will bring two key benefits to Optimism: the presence of a United States dollar-backed stablecoin that is fully reserved and always redeemable 1:1 for U.S. dollars, and the availability of institutional on/off-ramps.
It is no longer news that Circle caters to a cross-section of both retail and institutional investors, and with its debut on Optimism, it is bound to specifically expand its foothold as a major currency for institutional investors. In preparation for the integration, Circle said the Ethereum-bridged form of USDC on block explorers will be renamed as USDC.e. The firm said it will also be reaching out to ecosystem applications to make similar changes across the board.
Effect of the news on OP
The Circle-USDC debut on Optimism is not causing as much of a stir in relation to the price action of the OP native token. At the time of writing, OP is changing hands at a price of $1.48 after inking a mild 0.58% over the past 24 hours in the wake of a recent market rout.
The Optimism token will be one of the biggest beneficiaries of the USDC integration as it will create more liquidity pools of decentralized applications that will place higher demand on the token in the near future. In time, the integration might have a more positive impact in driving the price of OP across the board.