On August 9th, 2022, Circle, which issues USD stablecoins said it completely supports the ETH transition to a PoS. This transition is expected to happen after the Merge upgrade, which is anticipated by everyone eagerly. According to a company spokesman, USDC is an integral part of ETH’s innovation in the DeFi arena. This innovation has helped with L2 solutions being adopted. Many companies are relying on the capabilities offered by the ETH suite of solutions.
Per the latest reports, USDC is the most sought after stablecoin on ETH. Backed by the dollar, it is not only the largest asset in the ERC-20 category, USDC has a $45 billion capitalization. These reserves are not only audited by Blackrock. They are also being held by many institutional investors.
Unlike the skeptics, Circle says that it doesn’t expect problems with the ETH blockchain’s transition. Circle doesn’t think there will be any disruption in its capabilities. Users can look forward to having the same automated issuance and redeem any crypto they want. Since the testing environment used by Circle is tied to the Goerli testnet, it is being monitored closely.
Circle is working with other companies to vouch for the ETH transition to its PoS blockchain after the Merge. Chainlink apparently said it would not back any more PoW fork activity after the upgrade happens. Considering the approaching date for this upgrade, ETH’s L2 Optimism solution has experienced a 300% rise in value. Everyone in the crypto sphere is eagerly waiting to see what the Merge will bring to the market.