Quick take:
- Burnt has received a strategic investment from Circle Ventures.
- The layer1 blockchain builder also announced the launch of the XION public testnet
- XION has integrated the USDC stablecoin across the infrastructure stack, enabling the mainstream onboarding of users to Web3.
Burnt has announced a strategic investment from Circle Ventures. The layer-1 blockchain developer also announced the launch of XION, the first layer-1 blockchain to integrate USDC across the infrastructure stack.
Burnt describes XION as a modular account abstraction layer built to scale the next generation of interconnected applications, an attribute that it believes will be crucial for the mass adoption of users to Web3.
“XION uniquely abstracts away all technical complexities, making Web3 truly accessible for everyday users,” the company wrote in a post on X (formerly Twitter).
According to the announcement, XION is also the first blockchain to use Circle’s USDC as the primary transactional currency. This “[allows] any application built on XION to denominate assets in familiar fiat terms.”
This aspect alone leads to multiple benefits for the user, including eliminating security threats related to bridging risks, stability of pricing, and familiarity brought by XION’s abstract functionality, which allows users to interact on-chain the same way they would on web2 platforms.
With this strategic investment, Circle joins a growing list of top Web3 companies in Burnt’s portfolio of investors and partners, including the Hong Kong-based investment company Animoca Brands, Ethereum scaling protocol Polygon, HashKey Capital, Huobi Capital, Multicoin Capital, and Mechanism Capital, among others.
By using a stablecoin as its primary currency, Burnt will swap the fees collected in USDC with its native token before distributing to validators on XION.
“This combines the ease and stability of stablecoins with the security of Proof-of-Stake (PoS) networks,” Burnt wrote on X.
Stablecoins have emerged as the likely avenue to the mass adoption of users to Web3. leading financial services companies including PayPal (PYUSD) and Citigroup have launched private tokens as they look to leverage the advantages of transacting on the blockchain.
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