Circle Launches xReserve Infrastructure for USDC-Backed Stablecoins
Circle has introduced xReserve, a new interoperability infrastructure that enables blockchain teams to issue USDC-backed stablecoins and transfer value seamlessly across supported networks. The framework uses a Circle-deployed smart contract that holds USDC to back issued stablecoins and supports 1:1 transfers between USDC and USDC-backed assets. Cross-chain movements rely on xReserve attestation to reduce third-party bridge dependencies. Upcoming integrations include Canton Network and Stacks.USDC InfoUSD Coin is a leading stablecoin pegged 1:1 to the US dollar, aiming to offer a consistent value regardless of broader cryptocurrency market fluctuations. Developed and managed by Circle, it stands as the second-largest stablecoin ecosystem, surpassed only by USD Tether .USDC maintains its stable value by holding US dollar asset reserves in regulated financial institutions in the US. The integrity and sufficiency of these reserves are externally verified by Grant Thornton, an accounting firm that provides monthly attestation reports. This full backing ensures trust in the stablecoin, making it an appealing choice for various financial applications.Compatible with multiple blockchains like Ethereum, Algorand, Solana, Stellar, and TRON, USDC boasts a market capitalization that positions it within the top five cryptocurrencies. Beyond simply serving as a stable asset, it offers numerous functionalities, ranging from hedging against market volatility and facilitating rapid international remittances to enabling peer-to-peer payments and ensuring payment interoperability across diverse blockchain networks.