-
Circle Mulls Reversible USDC Stablecoin Transactions in Push for TradFi Adoption
Publicly traded stablecoin issuer Circle is exploring the possibility of reversible transactions involving its dollar-backed stablecoin, USDC. The firm’s considerations would stray from the concept of immutability—one of blockchain’s foundational premises that does not allow for finalized transactions to be modified—but potentially catalyze the intertwinement of stablecoins within traditional finance.
“We are thinking through… whether or not there’s the possibility of reversibility of transactions, right—but at the same time, we want settlement finality,” Circle President Heath Tarber explained. Tarber, who previously served as the chair and chief executive for the Commodity Futures Trading Commission, highlighted that, while some people believe blockchain is superior to current financial systems, there are benefits in the current system that aren’t necessarily present in blockchain.
Currently, Circle and other stablecoin issuers can freeze assets or blacklist addresses from engaging with their fiat-backed stablecoins, but they cannot undo or reverse a transaction once it's reached finality. For example, in May the firm froze $58 million in USDC tied to the Libra token scandal on Solana, rendering it unusable and untransferrable. Hayden Davis and Ben Chow, who helped launch LIBRA, regained access to their funds in August via a court order.
What Is Arc? The Stablecoin Blockchain From USDC Issuer Circle
According to Tarber, developers are discussing whether—in “certain circumstances” with agreeable parties—transactions could be reversed or refunded due to fraud on “certain blockchains.” However, the Circle executive suggested that this might not be a function on Arc, the upcoming layer-1 blockchain being developed by the firm. Instead, it would need to be a layer added on top of the Arc network.
Circle first announced Arc in August, highlighting its stablecoin-focused build that will use USDC as a native gas token for transaction fees, and offer sub-second finality and opt-in privacy features.
Tech Giant Cloudflare to Launch NET Dollar Stablecoin for 'AI-Driven Internet'
Circle, which completed its IPO earlier this year, expects Arc to hit public testnet this fall. Shares of CRCL are down nearly 2% today, now changing hands above $129. The firm’s dollar-pegged USDC stablecoin maintains the 7th-largest market cap among crypto assets at more than $74 billion.
A representative for Circle did not immediately respond to requests for comment.
This article has been published in Yahoo.com via Yahoo News.
