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<p class="is-style-lead">Noble and Celestia have announced their partnership to bring native stablecoin utility, notably Circle&#8217;s USDC, into the Cosmos ecosystem, a development expected to enhance liquidity and reduce volatility risks.</p>



<p>In the DeFi landscape, the role of <a href="https://crypto.news/stablecoins-why-they-may-be-better-than-altcoins/" data-type="URL" data-id="https://crypto.news/stablecoins-why-they-may-be-better-than-altcoins/">stablecoins</a> as facilitators of liquidity is pivotal. The lack of volatility risk they bring allows for seamless value transfers. </p>



<p>Networks such as <a href="https://crypto.news/price/ethereum/" data-type="URL" data-id="https://crypto.news/price/ethereum/">ethereum</a> and <a href="https://crypto.news/price/solana/" data-type="URL" data-id="https://crypto.news/price/solana/">solana</a> have thrived on this premise, having access to robust stablecoin utilities. However, the same can&#8217;t be said for <a href="https://crypto.news/price/cosmos-hub/" data-type="URL" data-id="https://crypto.news/price/cosmos-hub/">cosmos</a>, known as the &#8220;internet of blockchains&#8221;, which, until recently, didn&#8217;t have a native stablecoin.</p>



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<p>Noble and Celestia, two key players in the field, have joined forces to address this issue. Noble, an asset issuance chain, and Celestia, a data availability layer, are bringing native stablecoin utility to the cosmos ecosystem.</p>



<p>On the <a href="https://www.youtube.com/watch?v=OPVvYCMXaR8" data-type="URL" data-id="https://www.youtube.com/watch?v=OPVvYCMXaR8" target="_blank" rel="noreferrer noopener">0xResearch podcast</a>, Sam Martin, a research analyst at Blockworks, highlighted that the partnership between Noble and Celestia aims to facilitate the creation of native <a href="https://crypto.news/usdc-de-pegs-kraken-ceo-wonders-if-the-market-is-losing-trust-in-us-products/" data-type="URL" data-id="https://crypto.news/usdc-de-pegs-kraken-ceo-wonders-if-the-market-is-losing-trust-in-us-products/">USDC</a> for any chain using Celestia as a data availability layer. </p>



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<p>Martin asserted that this is a vital move for the DeFi ecosystem, given the indispensable role of stablecoins like USDC and USDT. These tokens, which hold a steady value tied to fiat currency, allow investors to generate yield on <a href="https://crypto.news/us-sec-delays-ratification-of-digital-assets-definition/" data-type="URL" data-id="https://crypto.news/us-sec-delays-ratification-of-digital-assets-definition/">digital assets</a> while mitigating market volatility risks.</p>



<p>He also pointed out the lack of native stablecoins has been a primary concern for cosmos, but with the introduction of USDC, he anticipates a significant reduction in liquidity fragmentation.</p>



<p>Ryan West, another research analyst at Blockworks, concurred with Martin, lauding the development as a game-changer for cosmos. The lack of a native stablecoin, West suggests, has stymied the <a href="https://crypto.news/defis-need-for-rewarding-users-a-path-to-sustainable-growth/" data-type="URL" data-id="https://crypto.news/defis-need-for-rewarding-users-a-path-to-sustainable-growth/">growth of DeFi</a> within cosmos, despite its longstanding presence.</p>



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<p>West posited that the use of Circle&#8217;s USDC stablecoin, enabled through Celestia&#8217;s data availability layer, is poised to exponentially boost the ecosystem&#8217;s growth. </p>



<p>Celestia, a layer-2 rollup, leverages light nodes to verify public transaction data availability, bypassing the need for downloading entire block data. This mechanism, termed &#8220;data availability sampling&#8221;, has been defined on the company&#8217;s website.</p>



<p>In West&#8217;s view, this development is set to re-energize the <a href="https://crypto.news/stride-raises-6-7m-and-plans-to-bring-liquid-staking-to-the-cosmos-ecosystem/" data-type="URL" data-id="https://crypto.news/stride-raises-6-7m-and-plans-to-bring-liquid-staking-to-the-cosmos-ecosystem/">cosmos ecosystem</a>.</p>



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Noble and Celestia partner to introduce native Cosmos stablecoin

crypto.news

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