USDT and USDC Establish Their Own Networks

[BitGoba]

USDT and USDC have announced that in the future, their tokens will be used for payments only on their own networks, and that fees will be charged exclusively in their tokens.


USDC issuer Circle to launch new layer-1 Arc blockchain this year

https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc


Tether creates ‘Stable’ blockchain built just for USDT economy
https://coingeek.com/tether-creates-stable-blockchain-built-just-for-usdt-economy/


This is likely bad news for most altcoins like Ethereum, solane ,Tron, BNB, and others, since people mainly use them for tokenized dollars

[passwordnow]

Yeah, pretty much bad news. The good thing about these stable coins when they're all available in almost every chain. And for that reason, it has helped a lot of transaction happen due to that availability. If they're developing only on their own network, we can't blame them but I think the one that will emerge is the one that's very adoptive and flexible in every usage for the sake of every user that wants to use it.

[Charles-Tim]

They are capable to have their one blockchain and I do not see anything bad there. But the thing is that as long as people are using other blockchain for it, they should let people continue to also be using other blockchains. I think that is what both tokens developers will do.

[DeathAngel]

USDT and USDC are the future because they make money move faster & cheaper than banks. They’re stable, always equal to $1, so people don’t worry about big price swings like Bitcoin. Businesses & regular people can send or receive payments worldwide in seconds, 24/7, without waiting for banks to open. They also connect traditional finance with crypto making it easier for people to trade, save or invest. As more companies & countries adopt digital payments, stablecoins like USDT & USDC will likely become a normal part of everyday money use.

[gunhell16]

USDT and USDC have announced that in the future, their tokens will be used for payments only on their own networks, and that fees will be charged exclusively in their tokens.


USDC issuer Circle to launch new layer-1 Arc blockchain this year

https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc


Tether creates ‘Stable’ blockchain built just for USDT economy
https://coingeek.com/tether-creates-stable-blockchain-built-just-for-usdt-economy/


This is likely bad news for most altcoins like Ethereum, solane ,Tron, BNB, and others, since people mainly use them for tokenized dollars

I don't know if this is bad news or just sad news for our crypto community in this industry. If it were up to me, I hope their plans don't push through. Honestly speaking, the current situation is much better, and I'm pretty sure everyone who has been here for a long time will agree with me.

The good thing now is that we can use USDT-USDC on several on-chain networks. Because if they really do that, we'll just look for other crypto assets that can also be used on all networks, and most likely, P2P merchants on CEX platforms will do the same.

[markm]

Putting all one's dollars in one basket doesn't seem a great idea from the start, a setup like Ripple and Stellar support always made more sense to me, each bank or Western Union or money-lender or whatever gets to issue its own tokens so any customers of their own who trust them would maybe use theirs, meanwhile they can also offer them for sale for anyone else's whose they are willing to trust and offer to buy them with anyone else's they happen to have ended up with for a moment to "back" them in the eyes of folk who trust one or more of those other ones.

Folk should be able to go like hey the shop I want to buy from uses Bank of New York so I want some of their dollar-tokens sent to that shop, which of various banks I deal with is Bank of New York willing to accept and of those which do they charge least "spread" for?

The idea seems to have been that all the various banks trading their own IOUs with lots of other banks' IOUs need not even be a confusion to users, it probably ought to even go so far as each shop wanting to sell stuff for dollar-tokens offering their own "dollar store-credits" for sale for any they choose of umpteen banks' or even other shops' dollar-IOUs or even dollar-store-credits so the retail customer just asks their wallet/client how much of which things they do have on hand it will take to obtain X number of shop Y's shop-credits.

Like oh I need 150.99 WALmart credits, what that I have would it cost me to get those, I choose which thing(s) I have I want to use to get those and have them sent to WALmart for me...

Heck there is maybe no real need for WALmart credits to even correspond to dollars, I might not be in the U.S. anyway, I might actually be more interested to see their prices displayed in bitcoins or IXCoins or Canadian dollars or British pounds or any other IOU/token/currency on the network...

A shop not locking its own credits it prices things in to any national fiat would have one less thing forcing a change of their prices, they can price everything in their own token then make offers for how much of what they are willing to sell how many of their own token for...


-MarkM-

[Dunamisx]

USDT and USDC have announced that in the future, their tokens will be used for payments only on their own networks, and that fees will be charged exclusively in their tokens.

With the way that the two stable coins have been well recognized, i don't expect that by now, they have not been assigned their own network, because they have gone wide to an extent of developing all it takes to have built their own network, lets take for instance, USDT, which has been available long time ago even before the introduction of USDC, by now it ought to have been on its own network than using other networks with the way they have been well recognized for use in cryptocurrency.

[asriloni]

Tether and Circle owned more than 230b mcap in total. it's more than 80% of total mcap stablcoin. Their scalable blockchain will be ruining the demand from other native blockchain. Other native blockchains such as Ethereum, Tron, and etc will be abandoned.  People will prefer to use stablecoin chain. It will slowly kill the blockchain that rely upon the stable tx such as Tron.

[markm]

So the lemmings flock to assets designed and intended to lose value and historically famous for reliably doing so decade after decade, century after century.

Bully for them, pun intended.

No reason to jump off cliffs oneself, surely?


-MarkM-

[TastyChillySauce00]

This is likely bad news for most altcoins like Ethereum, solane ,Tron, BNB, and others, since people mainly use them for tokenized dollars

I dont think its really bad news honestly for Ethereum, might be bad news for others though.
The reason people use something like tron is to avoid high fee on ethereum, however now that these stablecoin issuer are creating their own token, no more tron use anymore and so on.

ETH on the other hand have one big reason why people still uses stablecoin in there which is to find yield from onchain defi.
Even if USDT and USDC establish their own blockchain, ETH won't lose its TVL.

[Abiky]

USDT and USDC have announced that in the future, their tokens will be used for payments only on their own networks, and that fees will be charged exclusively in their tokens.


USDC issuer Circle to launch new layer-1 Arc blockchain this year

https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc


Tether creates ‘Stable’ blockchain built just for USDT economy
https://coingeek.com/tether-creates-stable-blockchain-built-just-for-usdt-economy/


This is likely bad news for most altcoins like Ethereum, solane ,Tron, BNB, and others, since people mainly use them for tokenized dollars

Let them have their own centralized chains then. I'm sure nobody will use them (except banks, governments, and companies). Tether and Circle just want greater control/manipulation over their stablecoins. And what better way than just creating their own blockchain network from scratch? I'm afraid that if these companies decide to move forward with the idea, their stablecoins will no longer be functional on other chains. Both Tether and Circle will "freeze" stablecoins on rival networks, forcing everyone to move to their centralized chains instead. Perhaps, this would be a huge win for decentralized stablecoins such as DAI and USDD? One can only hope.

The only downside would be that decentralized stablecoins can easily lose their peg anytime. Most of them are algorithmic, while others are collaterized against crypto. The market will ultimately decide which stablecoins stay afloat, and which will fade into oblivion. Just my two sats.

[luckyspirit]

This is not good for anyone. I don't want to use another network when I need to use USDT or USDC. I wonder what is the real reason behind this.

ETH on the other hand have one big reason why people still uses stablecoin in there which is to find yield from onchain defi.
Even if USDT and USDC establish their own blockchain, ETH won't lose its TVL.

Of course it will, a lot of the TVL comes from these tokens. If they withdraw them from the other chains, the TVL will go down.

[Kavelj22]

What does it mean that they will be only used for payments? I know that almost all those stable coins are mainly used as a trading instrument. This is can explained how the first USDT stable coin was made by a trading platform then expanded yo other networks. Means that USDT at the time weren't used outside of those platforms before supported by known networks.

Users can still use other stable coins in different network layers.

[luckyspirit]

What does it mean that they will be only used for payments? I know that almost all those stable coins are mainly used as a trading instrument. This is can explained how the first USDT stable coin was made by a trading platform then expanded yo other networks. Means that USDT at the time weren't used outside of those platforms before supported by known networks.

I didn't read anywhere that it will be only used for payments, but that payments will me one of the main uses. Where did you see that?

Users can still use other stable coins in different network layers.

Almost all other stablecoins are junk or extremely risky.

[programmer3666]

USDT and USDC have announced that in the future, their tokens will be used for payments only on their own networks, and that fees will be charged exclusively in their tokens.


USDC issuer Circle to launch new layer-1 Arc blockchain this year

https://cointelegraph.com/news/usdc-issuer-circle-layer-1-blockchain-arc


Tether creates ‘Stable’ blockchain built just for USDT economy
https://coingeek.com/tether-creates-stable-blockchain-built-just-for-usdt-economy/


This is likely bad news for most altcoins like Ethereum, solane ,Tron, BNB, and others, since people mainly use them for tokenized dollars

this move is appears huge in the crypto world!! but personally I don’t think it is a new bad news related for ETH, BNB, Solana and others.. because people mostly use those chains for stablecoin transfers!! but they still have big ecosystems with DeFi, NFTs and many more.. I think circle & Tether just want to control the rails and fees on their own dedicated networks. but the main question is whether users and exchanges will actually adopt this new blockchains because at the end of the day people will just go where it is easiest and there is more liquid but right now it is still Ethereum, Tron and BNB, so for now i don't think the news is bad for any of them.

[nelson4lov]

Yes, it's bad news for most of these chains because a large part of their TVL is denominated by stablecoins.

However, I think chains like Ethereum that have core DeFi built on it will still feature a lot of stable coins. Let's not forget that these stablecoin chains are EVM compatible so even though they have their own chain(s), it can still be bridged to Ethereum and used there. It would be interesting to see if all values goto these stablecoin chains or ethereum and solana can retain some of those value.

[TastyChillySauce00]

Yes, it's bad news for most of these chains because a large part of their TVL is denominated by stablecoins.

However, I think chains like Ethereum that have core DeFi built on it will still feature a lot of stable coins. Let's not forget that these stablecoin chains are EVM compatible so even though they have their own chain(s), it can still be bridged to Ethereum and used there. It would be interesting to see if all values goto these stablecoin chains or ethereum and solana can retain some of those value.

I honestly have my doubt about these stablecoin chain. I don't think they have use at all besides being used for an alternative to send money without volatility.

The reason ETH can have defi that offers high APY is because volatility, people are supplying liquidity to ETH/USDC pair and get APR as an LP, there's economy going in there, as a result there are people who looped their liquidity through lending platform like morpho and so on to supply to get multiplier on thier APR. This happens to many defi and as a result high TVL chain.
On the other hand these stablecoin chain won't be having that unless they can attract big defi to somehow use their chain which I doubt very much. The advantage is just stablecoin being used as a gas and thats it.

[FinneysTrueVision]

This is not good for anyone. I don't want to use another network when I need to use USDT or USDC. I wonder what is the real reason behind this.

They are not discontinuing support on other chains. Tether isn’t even launching this new blockchain themselves. They are only investors in new L1s that use their token as the native asset. It is not in their best interest to be exclusive to a single chain when they are so dominant across many chains.

USDC is also very dominant, especially in DeFi. It would break too many things for Circle to pull out all that liquidity. In fact, they are actually expanding to more chains as Hyperliquid will soon get native USDC.

[hugeblack]

A major development. It seems that governments want to control all transactions rather than freeze certain addresses.
TRON will be severely affected by these changes, and It's good WE have DAI.

[uneng]

Personally I think it's good news. For me it was quite frustrating to have accumulated a decent amount of USDC to find I had to have some tiny portion of Polygon in order to transact it, otherwise my money would be stuck on my wallet... Then I started looking for Polygon. And then I couldn't acquire only a tiny amount of it, because there weren't sellers willing to do so, so I had two alternatives: to purchase lots of Polygon (which I would never need), or to grind dust of Polygon through faucets.

I went for the second alternative and it took me few days to reach the minimum withdrawal limit on the faucet, so I could cashout Polygon to my wallet, and finally transact my USDC.

If USDC already had its own network, I wouldn't have gone through this Odyssey.