USDC to broaden its reach by partnering with Sony’s blockchain platform
Circle is set to collaborate with Sony in making the USDC stablecoin a primary token on Soneium, Sony’s layer-2 blockchain.
Soneium is a result of a partnership between Sony and Startale Labs. This public, Ethereum-based blockchain was launched in August with the goal of creating a new network framework using distributed ledger technology.
“Soneium has nearly 80 established partnerships and collaborations within its ecosystem, showcasing their commitment,” stated Joel Hugentobler, a Cryptocurrency Analyst at Javelin Strategy & Research. “One of the challenges in cryptocurrency adoption is the ease of use. Users should be able to transact with crypto seamlessly. Soneium aims to address this at the application layer, making the partnership with a stablecoin company significant.”
Bridging the Blockchain
The collaboration will involve integrating Bridged USDC, a version of the stablecoin that maintains the original USDC on its native Ethereum blockchain while creating a proxy on Soneium. This approach provides layer-2 developers more flexibility while ensuring the stability of the stablecoin’s original deposit.
“This partnership is a major milestone in Circle’s mission to drive the adoption of our stablecoins and blockchain technology, enabling creators to thrive through secure, user-friendly Web3 experiences,” said Circle CEO Jeremy Allaire in a prepared statement.
A Competitive Market
The stablecoin market is highly competitive, with new players entering the space regularly. Recently, PayPal introduced PYUSD, adding to the trend of big corporations and financial institutions investing in cryptocurrencies and digital assets.
There is also much anticipation surrounding the launch of Ripple’s new stablecoin, Ripple USD (RYUSD), which will be launched on the XRP Ledger blockchain, known for its higher transaction speed compared to Ethereum.
Currently, Tether’s USDT leads the stablecoin market with a market capitalization of $118.8 billion, followed by Circle’s USDC at $35.6 billion. The partnership with Sony is expected to give Circle a significant boost in market share.
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.