Circle will launch the USDC stablecoin on the Arbitrum network on June 8

Stablecoins will become native to the blockchain ecosystem

01.06.2023 - 16:00

485

2 min

Last updated on Aug 5, 2024

What’s new? Circle representatives have announced the launch of Arbitrum-based USD Coin (USDC) on June 8, which will see the stablecoin become native to the Layer 2 (L2) blockchain. This will be the official version of USDC recognized in the Arbitrum ecosystem, it will eventually replace the currently circulating “wrapped” version of the asset that comes from the Ethereum network.

Circle Blog

What else does the blog say? The benefits of native USDC are that they are fully collateralized and always available to be exchanged at a 1:1 ratio for US dollars. In the future, support from the CCTP (Cross-Chain Transfer Protocol) is expected to eliminate bridge withdrawal delays.

Arbitrum will rename the Ethereum-bridged version of the asset to “USDC.e” before launching the native USDC. There will also be outreach to the ecosystem application teams to make similar changes to the user interface and documentation of their projects. This will ensure a smooth transition of liquidity from “bridged” USDC to native. There will be no immediate changes to the Arbitrum bridge, and it will continue to operate as normal to migrate USDC to and from Ethereum.

Circle plans to implement CCTP on Arbitrum after the launch of native USDC. Once integrated into the Arbitrum bridge, it will allow coins to be moved to Ethereum (and other supported networks) “in minutes.”

The issuer announced the launch of USDC on Arbitrum, as well as in Cosmos, NEAR, Optimism, and Polkadot networks in September 2022.

In April of this year, Circle launched the mainnet of the CCTP protocol, which allows transferring assets between the Ethereum and Avalanche blockchains.

Author: