Circle natively issues on multiple chains and some projects will pay a significant upfront fee for that privilege
Obviously, Circle issued native USDC on Noble back in Sept 2023 out of a tangible need and due to Noble’s role as reliable multichain infrastructure
We’ve always believed in permissionless interoperability, the multichain thesis and the simple fact that many legitimate stablecoin & RWA issuers would come to the forefront and be credible distribution channels for the multi trillion stablecoin market
Thanks to our experience being a reliable issuance protocol, we’ve been able to develop Noble to be: secure, battle-tested, highly efficient / scalable and of course “purpose built for asset issuance”
We launched USDN composable yield few months ago, and are gearing up for the EVM AppLayer launch very soon (among other very exciting initiatives)
It’s easy to see short term TVL action as some indicator of X, Y, Z problem but realistically, the teams that manage to stick it out for the long term, build sustainably and methodically, and who can be reliable partners to a wide variety of players… will no doubt succeed in the end
NM
Nobody likes a black swan event.
But there's an issue rumbling in Cosmos that I don't think gets talked about enough.
USDC on Noble, and what if Circle decided to discontinue support?
Let's look at some numbers.
USDC issued on Noble is shrinking. At the end of 2024, there was over $500m USDC issued on the Noble chain. However, this has shrunk to below $345m now, and is on a downward trajectory. Remember, this is a time where USDC issuance on every chain is up only.
Now let's look deeper at that $345m USDC that is issued on Noble. A whopping $250m is used in DYDX only!
Is one app enough to sustain the majority of USDC Noble issuance?
We all know the story of DYDX v4, and their move away from EVM to Cosmos and IBC in 2023. Well, what happens if they do a SEI, and decide to move back to EVM? Would it spell an end to Noble USDC as we know it?
Liquidity is already terrible in Cosmos. This would likely be a final nail in the coffin.
I welcome your thoughts.
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