Celo ecosystem gets new foundation to boost stablecoin use

The Stabila Foundation has launched a new initiative to increase stablecoin adoption within the Celo ecosystem and aims to encourage real-world use cases for the network.

The Celo (CELO) blockchain ecosystem has welcomed a new foundation focused on increasing the adoption and use of stablecoins on its network.

The Stabila Foundation, funded by the Celo community, aims to increase the financial stability of the ecosystem by promoting the real-world utility of stablecoins, particularly in emerging markets such as Africa, Latin America, and Southeast Asia, according to a press release shared with crypto.news on August 28.

“We aim to achieve these goals by collaborating closely with stablecoin issuers, ecosystem implementations, infrastructure partners, merchants, and everyday users.”

Stabila Foundation

The foundation has received support from the Celo community as well as Allbridge Core, Angle Labs, and the Wormhole Foundation.

Celo seeks more stablecoin activity

The Foundation will focus its resources on providing incentives for stablecoin liquidity pools, supporting educational campaigns, and supporting projects that align with its mission. By collaborating with stablecoin issuers, the Foundation aims to increase trading volumes and user growth on Celo and position it as a leading platform for stablecoins, the press release reads.

Celo already supports major stablecoins like (USDT) and (USDC), which collectively account for over 85% of the stablecoin market, but the foundation aims to expand the ecosystem even further by encouraging the use of various local currency stablecoins, including those from Mento Labs, Angle Labs, and BRLA Digital.

Total market value of Celo-based stablecoins as of August 28 | Source: DefiLlama

According to DefiLlama’s data, the total market value of stablecoins on the Celo network is at $337.57 million, while Tether’s USDT accounts for more than 75% of the market.

Commenting on the foundation’s launch, Cumberland’s head of global business development, Paul Kremsky, said stablecoins have emerged as “the most important use case of blockchain,” adding that moving stablecoins beyond the US dollar is “a significant effort that will bring this infrastructure to the entire world, including regions that are underserved by traditional banking rails.”