Cosmos and Circle Secret Contact: Why Native USDC Is Crucial to the Ecosystem

Cosmos Labs Co-CEO magmar recently revealed on Telegram that the team has been in talks with payments giant Circle to explore the possibility of issuing native USDC on Cosmos. This is not just a simple partnership announcement but reflects the urgent demand for stablecoin infrastructure within the cross-chain ecosystem.

What’s Happening

According to the latest news, Cosmos Labs Co-CEO magmar disclosed in a Telegram chat that their team has discussed with Circle about issuing native USDC. Although the message is brief, this move indicates new progress in the Cosmos ecosystem’s infrastructure development.

Why This Matters

What does native USDC mean

Native USDC differs from cross-chain USDC. Native USDC means USDC is issued and operates directly on the Cosmos chain, rather than through a cross-chain bridge. This has several key implications for the ecosystem:

• Faster transactions with lower costs
• Higher security, avoiding cross-chain risks
• Smoother user experience without additional wrapping and exchanges
• Providing a more reliable stablecoin foundation for DeFi applications on Cosmos

USDC’s Market Position

Market data shows the importance of USDC is undeniable. According to the latest figures, USDC has a current market cap of $7.372 billion, ranking 6th in the cryptocurrency market cap list with a market share of 2.44%. Its 24-hour trading volume reaches $1.41 billion, with a circulating supply of over 73.7 billion tokens. This indicates that USDC has become one of the most significant stablecoins in the market.

Ecosystem-Level Considerations

Cosmos has always positioned itself as “the internet of the internet,” emphasizing cross-chain interoperability. However, a complete cross-chain ecosystem requires reliable stablecoin infrastructure. Currently, Cosmos lacks a truly native stablecoin, which limits the development of DeFi applications within the ecosystem.

The engagement with Circle shows that the Cosmos team recognizes this pain point and is actively seeking solutions. If negotiations succeed, native USDC could become the primary medium for transactions and settlements within the Cosmos ecosystem, boosting overall activity.

Notable Details to Watch

Currently, this is still in the “talks” stage and no final agreement has been reached. This means:

• Specific cooperation terms are still under negotiation
• Implementation timeline has not been determined
• Whether it will ultimately be realized remains uncertain

However, considering the influence of Circle and Cosmos, if successful, this collaboration would be a significant case of stablecoins integrating with cross-chain ecosystems.

Summary

The engagement between Cosmos and Circle reflects a clear industry trend: native stablecoins are becoming standard across major blockchain ecosystems. For Cosmos, introducing native USDC would not only improve its infrastructure but also enhance its competitiveness in the cross-chain space. Although still in the discussion phase, this signal demonstrates Cosmos’s proactive efforts in ecosystem development. Future updates on negotiation progress and specific implementation timelines are worth watching.