Hedera Hashgraph adds USDC while eyeing DeFi

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Oct 18, 2021
  • Circle’s dollar-backed stablecoin, USDC, was just added to Hedera Hashgraph’s network.
  • Hedera has thus become the sixth network to adopt the stablecoin and provide it with even more use cases.
  • Hedera, on the other hand, believes that USDC is the best available way for it to enter the DeFi sector.

Hedera Hashgraph just announced that it added USD Coin (USDC/USD) to its network. The dollar-backed stablecoin is of great importance for the network, which says that it sees it as a key building block for DeFi and payment use cases in the crypto economy.

Hashgraph is a well-known alternative to blockchains, which uses direct acyclic graphs for time-sequencing transactions without having to build them into blocks. As it is currently looking for an opportunity to expand more into decentralized finance, its adoption of USDC is no coincidence.

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The HBAR Foundation CEO, Shayne Higdon, stated that anyone can transact value with USDC on Hedera now, and to do it with significant benefits over other chains. Some of these benefits include things like high performance, sustainable energy efficiency, and low latency.

Plus, many of the Hedera-based projects will also benefit from the addition of USDC, such as the NFT marketplace Third Act, MyHbarWallet, and Hex Trust, a crypto custodian targeting institutions.

In fact, the HBAR Foundation has recently set aside $2.5 billion in Hedera’s native coin to help DeFi development through grants.

Circle also sees great potential in joining Hedera

Apart from everything already mentioned, the coin can also vitalize the enterprise players that run Hashgraph’s nodes, many of which are major corporations, such as Google, Deutsche Telekom, Boeing, IBM, and others. Higdon even believes that it might bolster use cases such as ledger-based supply-chain platforms and securitization.

Circle, the creator of the USDC, was also quite attracted by the idea of entering Hedera’s network thanks to its enterprise achievements, and the opportunity to have its coin used in permissioned settings. Of course, Circle is already somewhat accustomed to DeFi and its potential, as well as that of the NFT sector.

Its VP of Product, Joao Reginatto, said that the company decided to prioritize Hedera earlier this year, as it felt that it has the power for more enterprise use of USDC. On top of that, there are many interesting features for the build-out of more enterprise applications. And, with this addition, Hedera is now the sixth blockchain to add USDC.

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