- Many World Chain users will soon have the ability to swap USDC for native tokens, increasing flexibility within the platform.
- The adoption of stablecoins could play a significant role in driving the market to a $2 trillion valuation by 2030.
- Additionally, stablecoin transaction volume in September 2024 is expected to reach $3 billion, highlighting the growing demand for crypto in Latin America.
On May 1, World Chain announced the integration of USDC, the stablecoin issued by Circle, along with Circle’s Cross-Chain Transfer Protocol (CCTP).
This update enables World Chain’s 25 million users to transfer USDC from other blockchains and convert it into native stablecoins supported on the network. Importantly, transactions will no longer require centralized exchanges or third-party bridges.
The integration enhances both transaction speed and security for dollar-backed transfers. World Chain, which supports Worldcoin, was co-founded by OpenAI’s Sam Altman.
How Does Native USDC Improve Security for World Chain Users?
According to a blog announcement from World Chain, the integration of the USDC stablecoin combines the largest use case in crypto with the world’s most globally distributed network.
World Chain revealed that nearly two million users already hold bridged USDC in their World App wallets and are set to upgrade to native USDC, issued directly by Circle.
Previously, World Chain users accessed bridged USDC stablecoin through Mini Apps, which allowed them to send remittances with minimal fees. However, upgrading to native USDC, paired with Circle’s Cross-Chain Transfer Protocol (CCTP) V2, will simplify and enhance these processes.
CCTP V2, first introduced in April 2023, is an upgraded version of Circle’s protocol designed to increase the speed and efficiency of USDC transfers across different blockchains.
Although the exact date of the integration has not yet been announced, the upcoming updates are expected to deliver significant advantages. For instance, users will be able to convert their existing bridged USDC on World Chain into native USDC.
Unlike bridged tokens, native USDC is fully backed by cash and cash-equivalent reserves.
Blockchain transfers will also become faster, more dependable, and more secure.
Businesses will benefit from access to the blockchain’s “Institutional On/Off-ramps with Circle Mint” feature, enabling eligible enterprises to seamlessly convert between fiat currencies and digital assets like USDC.
Developers will also gain functionality, with the ability to directly integrate USDC into Mini Apps on World Chain.
Moreover, the blockchain has announced plans to support EURC—a fully regulated, euro-backed stablecoin—broadening its offerings for European users seeking MiCA-compliant solutions.
Will Stablecoin Growth Hit $2 Trillion or Stumble on Regulation?
World Chain’s adoption of USDC aligns with the growing trend of stablecoins playing a central role in the digital finance ecosystem.
According to DeFiLlama, $4.902 billion in new stablecoins were introduced just in the past week, bringing the total stablecoin market capitalization to $242.407 billion.
Tether (USDT) remains the dominant force in the stablecoin market, holding a commanding 61.65% share. Other major players include USDC, Ethena’s USDe, and MakerDAO’s DAI.
The sector is also drawing increased attention from major financial institutions. Citigroup forecasts that the stablecoin market could surpass $2 trillion by 2030, though it cautions that unresolved regulatory and integration challenges could limit growth to just $500 billion.
U.S. regulators are beginning to weigh in. Federal Reserve Governor Christopher Waller recently highlighted the potential of dollar-backed stablecoins to strengthen the global role of the U.S. dollar.
On the corporate front, Mastercard has launched a comprehensive “360-degree” initiative aimed at enabling stablecoin payments across more than 150 million merchants worldwide.
Stripe, a leading name in the payments industry, is also entering the stablecoin space with the development of its own USD-backed digital currency.
Beyond North America and Europe, stablecoin adoption is accelerating rapidly, particularly in emerging markets. Brazil stands out as a key example.
Itaú Unibanco, one of Brazil’s largest banks, is reportedly exploring the launch of its own stablecoin. This comes amid reports that, in September 2024 alone, 4.4 million Brazilians transacted $4.2 billion in crypto assets.
Stablecoins played a central role, accounting for 71.4% of that volume—roughly $3 billion.
As adoption surges across Latin America, uncertainty surrounding the EU’s MiCA regulations and delayed regulatory clarity in the U.S. could still cast a shadow over the projected $2 trillion market expansion.
Frequently Asked Questions (FAQs)
How does MiCA impact stablecoins on World Chain?
The EU’s Markets in Crypto-Assets (MiCA) regulation imposes strict compliance requirements on stablecoin issuers, including maintaining full 1:1 reserves, undergoing regular audits, and securing authorization within the EU. As a result, only fully compliant stablecoins like USDC and EURC will be permitted for unrestricted trading within the European Union. Non-compliant tokens face the risk of delisting.
Where is Circle’s CCTP currently deployed?
Circle’s Cross-Chain Transfer Protocol (CCTP) is already live across several major blockchains, including Ethereum, Arbitrum, Avalanche, and Optimism. It also supports innovative projects like LinearBuild, which enables cross-chain transfers, and SonicLabs, which focuses on multi-chain DeFi applications.
Does World Chain’s iris-scanning feature deter institutional involvement?
Not at all. World Chain now allows users to delete their iris codes, giving them greater control over their biometric data. This enhances privacy without diminishing the platform’s attractiveness to institutional users.
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