Circle will launch USDC on the Celo network

Circle, issuer of the stablecoins including USDC and EURC, will launch its USD-pegged stablecoin on Celo CELO +6.17% , the Layer 1 that's transitioning into an Ethereum Layer 2 scaling network.

In addition to natively launching the token, an imminent governance vote will determine if USDC will act as Celo's official gas currency. 

"Circle is proud to join the mission-driven Celo ecosystem as a blockchain that's known for providing fast, low-cost payments worldwide," Shamus Noonan, Senior Manager, Business Development at Circle, said in a statement. "This partnership will help broaden access for USDC and leverage Celo's mobile-first user-base in regions where blockchain adoption is highest."

Celo's transition to Layer 2

Celo started out as an EVM-compatible Layer 1 with a focus on scalability. However, cLabs, the firm developing Celo, proposed to transition the network into an Ethereum Layer 2 scaling protocol in July, with a majority in-favor vote passing the proposal toward the end of the same month. 

Celo's native token CELO traded hands at $0.67 as of 4:15 p.m. ET on Jan. 29, rising 2% over the previous 24 hours, according to The Block data .