XION To Use USDC as Native Currency For its Layer-1 Blockchain

Emerging layer-1 blockchain XION has revealed it has inked a strategic partnership with Circle to integrate the USDC stablecoin in its ecosystem fully.

XION, a new Ethereum challenger, revealed that it has bagged a strategic investment from Circle Ventures, the venture capital arm of the stablecoin issuer. While the funding is aimed at bootstrapping the XION ecosystem, the integration of USDC is the highlight of the partnership.

According to Burnt, building XION, the broad accessibility of the USDC stablecoin will help chart its path toward mainstream consumer adoption.

Benefits of the XION-USDC Integration

Many blockchain protocols power their ecosystem with a native coin. Rather than create its own, XION decided to adopt USDC to help complement its mission. 

XION aims to make Web3 simplified for users, and with many already familiar with how the USDC works, the integration becomes a natural fit. The team highlighted three critical benefits of this partnership: security, stability, and familiarity.

The security benefit is hinged on the fact that no bridging risks are associated with the USDC integration. XION users can redeem the token on a 1:1 basis with the US Dollar. Also, XION noted that since the USDC is fully reserved, fears of instability are taken off the equation.

While it is still relatively new, XION said it hopes to mimic existing Web2 applications so that users can be familiar with the products from within its ecosystem.

USDC Powering Web3 Systems

That USDC is now the native token on XION does not come with so much surprise. Over the past year, USDC has expanded its influence on highly functional blockchain protocols. 

To date, USDC has been integrated with protocols, including Near Protocol and Polygon. The fact that USDC is also tradable on many crypto exchanges also provides a robust liquidity base that can serve XION users and other protocols with close attachment to the stablecoin.