Stablecoin issuer Circle has revealed its plans to introduce USDC (USD Coin) on the Arbitrum blockchain. This move signifies that the native USDC issued by Circle will serve as the official version of the stablecoin within the Arbitrum ecosystem. The company aims to gradually replace the existing “bridged USDC” liquidity, which is currently facilitated through Ethereum’s Layer 2 protocol.
Enhanced Benefits for Ecosystem Users with Native USDC on Arbitrum
Circle has outlined that the launch of native USDC on Arbitrum will occur on June 8, 2023. This development will bring several advantages for ecosystem users, including enhanced cross-chain transfer protocol support that eliminates delays associated with bridge withdrawals. Additionally, the integration of native USDC will enable the introduction of additional institutional on and off-ramps, facilitated through Circle and its partners. To reflect the transition, Circle plans to modify the Ethereum-bridged USDC displayed on block explorers by renaming it as “USDC.e.” The expectation is that applications within the ecosystem will also update their user interfaces and documentation accordingly. To ensure a smooth transition of liquidity from bridged USDC to native USDC, the Arbitrum Foundation will collaborate with ecosystem apps. The foundation will work towards facilitating this shift, while Circle reassures users that there will be no immediate changes to the functioning of the Arbitrum Bridge, which will continue to operate normally for bridging USDC to and from Ethereum. This announcement from Circle follows closely on the heels of the company’s recent launch of Euro Coin, a stablecoin backed by the euro, on the Avalanche blockchain. Circle’s objective is to provide multichain support for its euro-backed stablecoin.
The native USDC on Arbitrum will offer various benefits, such as improved cross-chain transfers and expanded institutional on and off-ramp options. The transition process will be supported by the Arbitrum Foundation, ensuring a seamless shift for ecosystem apps. Circle’s move aligns with its efforts to support multiple blockchains, following the recent introduction of Euro Coin on Avalanche.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only.
