Noble and Celestia partner to introduce native Cosmos stablecoin

[ad_1]

Noble and Celestia have announced their partnership to bring native stablecoin utility, notably Circle’s USDC, into the Cosmos ecosystem, a development expected to enhance liquidity and reduce volatility risks.

In the DeFi landscape, the role of stablecoins as facilitators of liquidity is pivotal. The lack of volatility risk they bring allows for seamless value transfers.

Networks such as ethereum and solana have thrived on this premise, having access to robust stablecoin utilities. However, the same can’t be said for cosmos, known as the “internet of blockchains”, which, until recently, didn’t have a native stablecoin.

Update#Cosmos Ecosystem App Chain Noble Brings Native #USDC to Modular #Blockchain Celestia.
May 31 – #Cosmos eco-application chain Noble has announced the introduction of native #USDC to the modular #blockchain Celestia, providing Celestia with direct access

— imrichboy.eth (@richboy_btc) May 31, 2023

Noble and Celestia, two key players in the field, have joined forces to address this issue. Noble, an asset issuance chain, and Celestia, a data availability layer, are bringing native stablecoin utility to the cosmos ecosystem.

On the 0xResearch podcast, Sam Martin, a research analyst at Blockworks, highlighted that the partnership between Noble and Celestia aims to facilitate the creation of native USDC for any chain using Celestia as a data availability layer.

Martin asserted that this is a vital move for the DeFi ecosystem, given the indispensable role of stablecoins like USDC and USDT. These tokens, which hold a steady value tied to fiat currency, allow investors to generate yield on digital assets while mitigating market volatility risks.

He also pointed out the lack of native stablecoins has been a primary concern for cosmos, but with the introduction of USDC, he anticipates a significant reduction in liquidity fragmentation.

Ryan West, another research analyst at Blockworks, concurred with Martin, lauding the development as a game-changer for cosmos. The lack of a native stablecoin, West suggests, has stymied the growth of DeFi within cosmos, despite its longstanding presence.

West posited that the use of Circle’s USDC stablecoin, enabled through Celestia’s data availability layer, is poised to exponentially boost the ecosystem’s growth.

Celestia, a layer-2 rollup, leverages light nodes to verify public transaction data availability, bypassing the need for downloading entire block data. This mechanism, termed “data availability sampling”, has been defined on the company’s website.

In West’s view, this development is set to re-energize the cosmos ecosystem.

[ad_2]

Read More: crypto.news