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Circle Extends Its Infrastructure to Solana Blockchain That Excels at Stablecoin Transfers

Circle expands USDC support to Solana

Circle, the issuer of the USD Coin (USDC) stablecoin, is expanding its Web3 Services and Tools suite to the Solana blockchain, aiming to enhance USDC's accessibility for developers and enterprises.

Key takeaways:

  1. Circle's move comes as Solana emerges as the most popular network for stablecoin transfers, particularly in cross-border payments.
  2. Solana processed $1.4 trillion in stablecoin transfers in March, capturing a 43% market share in the value of stablecoins transferred.

Circle's decision to extend its Web3 Services and Tools suite to Solana is driven by the network's growing popularity among developers and businesses. The initiative will allow enterprises to use APIs to integrate secure wallets, manage on-chain transactions or smart contracts, and streamline user onboarding and transaction flows.

In its official announcement, Circle expressed excitement about partnering with Solana's dynamic developer community and businesses to develop and launch innovative applications. This move demonstrates Circle's commitment to improving USDC's accessibility and ensuring easy integration into various applications built on the Solana blockchain.

The expansion of Circle's Web3 services to Solana comes in response to an AllianceBernstein research report that highlights Solana's emergence as the preferred network for stablecoin transfers, particularly in the realm of cross-border payments.

Solana dominates stablecoin transfers

The stablecoin market has experienced significant growth in recent months, with USDC's supply increasing by nearly 10% in the last month alone. Amid this growth, Solana has positioned itself ahead of Ethereum in terms of stablecoin payment volume, as evidenced by the AllianceBernstein report authored by analysts Gautam Chhugani and Mahika Sapra.

According to Artemis' data, Solana captured a dominant 43% market share in the value of stablecoins transferred, processing $63.6 billion compared to Ethereum's $26.6 billion. On-chain data reveals that Solana's stablecoin transfer volume amounted to $1.4 trillion in March, more than double Ethereum's $635 billion.

While Ethereum still holds a higher market cap of stablecoins on its blockchain, much of its capital remains unused. The Bernstein analysts noted that although Solana has overtaken Ethereum in value transferred, it faces significant scalability challenges, especially for consumer payments.

As the stablecoin market continues to grow and evolve, the partnership between Circle and Solana is poised to play a significant role in shaping the future of cross-border payments and financial accessibility.