COTI has declared a new significant milestone in achieving the goal of improving liquidity and services for financial markets. It is adding Circle’s Bridged USDC standard to COTI V2, and this is an important step for moving forward as it enters the stablecoin industry. This will enhance the Firm’s capabilities in DeFi, lead to easy exchange of assets, and facilitate new and diverse dApps.
Announcing COTI x USDC $USDC will be the first stablecoin on COTI V2, boosting liquidity, fueling DeFi growth, and paving the way for further stablecoin partners. A major step for the COTI ecosystem! Learn more https://t.co/ejzqOKROBg $COTI @circle pic.twitter.com/fQaCcZF0rw — COTI Foundation (@COTInetwork) February 14, 2025
Stablecoins like the USDC provide speed and efficiency of blockchain in their transactions while still holding high stability, similar to that of fiat currency. The increasing adoption of USDC across the crypto space means more users and developers; thus, the integration will provide a way to foster better liquidity.
Why Stablecoins Are Essential for COTI
Stablecoins have become central to many forms of decentralized finance applications such as lending, borrowing, trading, and, most importantly, asset exchanges. Overall, USDC integration is one of the positive steps that COTI is taking to improve its DeFi platform and offer users a stable digital currency.
Another essential benefit for USDC is its high liquidity and balance sheet backing that consists of cash and short-term United States treasury invoices. This makes it possible for it to sustain a $1 peg consistently, and as such, is preferred by exchanges, traders, and dApps, among other use cases. Moreover, such stablecoins as USDC are crucial when working with RWAs as they allow mirroring of off-chain value when transacting on the blockchain.
How the USDC Bridge Works on COTI V2
The USDC Bridge enables bridging between the USDC of different networks to keep it 100% backed and secure. Here’s how it works:
1. Interested users deposit their USDC on the source blockchain within the smart contract of the bridge, where they are locked until required.
2. Each USDC is created on COTI V2 to be 100% backed by the equivalent value in USDC.
3. These USDC.e tokens can be used throughout its DeFi platform.
4. When the users desire to bring their USDC back to the source chain, these tokens are burnt on COTI V2, and the original USDC is received on the other chain.
The Road Ahead: More Stablecoins on COTI
This is only the first step for COTI in its quest to embrace stablecoins in its operations. They are now planning to add more stablecoins like Djed to enhance the liquidity and freedom of operations needed by individuals. With the launching of USDC on V2, there are new programs, depository, dApps, and partnership opportunities opening up in the Web3 area with the network.