On Tuesday, Circle, the blockchain firm issuing USDC, announced full support for the upcoming Ethereum Merge. The blockchain firm said it intends to fully and solely backs the Ethereum proof-of-stake (PoS) chain post-merge.
The official blog read, “We understand the responsibility we have for the Ethereum ecosystem and businesses, developers and end users that depend on USDC, and we intend to do the right thing.”
The firm said that it is looking forward to the merge between Ethereum’s current execution layer and the Beacon Chain, with its new Proof of stake (PoS) consensus.
Joao Reginatto, the VP Product of Circle further explained that the firm also does not anticipate ‘interference to USDC on-chain capabilities’ or to its ‘automated issuance and redemption services’.
It is worth mentioning that the testing environment of Circle is linked to the Goerli Ethereum testnet, and Circle will closely monitor it as it merges with Prater in the upcoming days.
Note that as the firm doesn’t bet on the possibility of forks after the Merge, USDC which is an Ethereum asset would only be in the form of a single valid “version”.
However, if a fork is possible post-merge, other projects might have to determine if proof of stake or miners’ proof of work will retain value.
The support from Tether and Circle is thus very important.
Also Read: Tether to Support Ethereum PoS Transition
It’s a known fact that stablecoins are important for most of the DeFi applications living on Ethereum, and how projects retain value is important too as it will be instrumental in determining which chain will retain!