Circle has announced that it considers mulling reversible USDC stablecoin transactions in a push for TradFi adoption.
Following this announcement, the firm’s considerations would stray from the concept of immutability, which represents one of blockchain’s foundational premises that does not allow for finalised transactions to be modified. However, it could potentially catalyse the overall intertwinement of stablecoins within traditional finance.
According to officials of the company, some people believe blockchain represents a circular solution to current financial systems, as there are some benefits of the current system that aren’t necessarily present.
More information on Circle’s plan to enable reversible USDC transactions
At the moment, Circle and other stablecoin issuers have the possibility to freeze assets or blacklist addresses from engaging with their fiat-backed stablecoins, but they cannot undo or reverse a transaction once it reaches finality. With this in mind, several developers are currently discussing whether transactions could be reversed or refunded due to fraud on certain blockchains, in a couple of circumstances, with agreeable parties.
However, according to Financial Times, the Circle executive backed away from this being a possible function on Arc, which represents the upcoming layer-1 blockchain that is being developed by the firm. Instead, they mentioned that this feature would also need to be a layer added on top of the Arc network.
Circle first announced Arc in August, highlighting its stablecoin-focused build that was set to leverage USDC as a native gas token for transaction fees, as well as offer sub-second finality and opt-in privacy features. The network was expected to be fully integrated into Circle’s existing platform and services, while also remaining interoperable with many other blockchains that already support USDC. Later in the same month, Circle acquired Malachite in order to power its Arc Blockchain, as the deal was set to include the technology and intellectual property of the company.a
