Hideo Nakamura Circle Internet Financial, a provider of stablecoins, has announced that its dollar-pegged token, USDC, will be introduced natively on the Arbitrum layer two (L2) blockchain starting from June 8. This move follows Circle’s recent integration of its euro-pegged coin, EUROC, with the Avalanche blockchain.
On Thursday, Circle disclosed its plan to launch USDC, the second-largest stablecoin with a market capitalization of around $28.8 billion, on Ethereum’s L2 scaling network, Arbitrum. Circle stated that the USDC issued on Arbitrum will be considered the official version for the Arbitrum ecosystem, gradually replacing the existing “bridged USDC” liquidity sourced from Ethereum.
Arbitrum, in a blog post, discussed the forthcoming native support for USDC and highlighted the benefits it will bring, including institutional on/off-ramps facilitated by Circle and its partners. The integration of Circle’s Cross-Chain Transfer Protocol (CCTP) is expected to eliminate delays associated with bridge withdrawals. Additionally, Arbitrum mentioned that the upgradeable smart contract will enable Circle to implement future improvements for an enhanced user experience.
As part of the transition, Arbitrum intends to rename the Ethereum-bridged edition of USDC on block explorers as “USDC.e” and aims to collaborate with ecosystem applications to adopt this change in their user interfaces and documentation. The goal is to ensure a smooth shift of liquidity from bridged USDC to native USDC over time. Meanwhile, the functionality of the Arbitrum Bridge will remain unchanged for now.
In tandem with this announcement, Circle recently made adjustments to its USDC reserves by removing U.S. Treasury bonds, retaining only cash and overnight repurchase agreements. Furthermore, Circle successfully launched EUROC, its euro-backed stablecoin, natively on the Avalanche blockchain. In March, Circle partnered with token protocol startup Noble to bring USDC to the Cosmos chain. For additional support and information, Circle has established a presence on Arbitrum’s Discord channel, “usdc-circle-support.”
What are your thoughts on Circle’s decision to bring USDC to Arbitrum? Feel free to share your opinions and insights in the comments section below.
Table Of Contents
FAQ about USDC launch on Arbitrum
What is USDC?
USDC stands for USD Coin, which is a stablecoin issued by Circle Internet Financial. It is a digital currency pegged to the value of the US dollar, providing stability in the volatile cryptocurrency market.
What is Arbitrum?
Arbitrum is a layer two (L2) scaling solution for the Ethereum blockchain. It aims to enhance scalability and reduce transaction fees by processing transactions off-chain while leveraging the security of the Ethereum network.
What is the significance of USDC launching on Arbitrum?
How will USDC on Arbitrum benefit users?
USDC on Arbitrum offers several benefits to users. It provides enhanced scalability, faster transactions, and reduced fees compared to using USDC on the Ethereum mainnet. The integration with Circle’s Cross-Chain Transfer Protocol (CCTP) also ensures smoother bridge withdrawals and enables institutional on/off-ramps.
How will the transition from bridged USDC to native USDC on Arbitrum occur?
Arbitrum plans to work with ecosystem applications to facilitate a smooth transition from the existing “bridged USDC” liquidity to the native USDC on the Arbitrum network. Over time, native USDC liquidity will grow and replace the bridged version. The Ethereum-bridged edition of USDC will be renamed as “USDC.e” on block explorers.
What other developments have Circle made in the stablecoin space?
Circle has been actively expanding its stablecoin offerings. In addition to launching USDC on Arbitrum, they have integrated their euro-pegged stablecoin, EUROC, with the Avalanche blockchain. Circle has also partnered with Noble to bring USDC to the Cosmos chain and made adjustments to its USDC reserves by removing U.S. Treasury bonds.
Where can I find more information and support for USDC on Arbitrum?
For more information and support regarding USDC on Arbitrum, you can visit Circle’s presence on Arbitrum’s Discord channel under the “usdc-circle-support” section. Additionally, you can refer to Circle’s official website and documentation for further details on using USDC on the Arbitrum network.
More about USDC launch on Arbitrum
- Circle’s Official Website
- Arbitrum Official Website
- USDC Official Website
- Circle’s Announcement on USDC Launching on Arbitrum
- Arbitrum Blog Post on USDC Native Support
- Circle’s Discord Channel for USDC on Arbitrum Support
5 comments
USDC is goin’ big! Circle’s stablecoin is headin’ to Arbitrum’s L2 blockchain. That means more liquidity and a better user experience. Can’t wait to see how it takes off!
Circle’s USDC makin’ moves on Arbitrum! This is gonna be huge for crypto enthusiasts. Finally, a stablecoin with enhanced scalability and faster transactions. Good stuff!
USDC goin’ native on Arbitrum? Count me in! This integration will bring more options for traders and investors, and it’s a step forward for the Ethereum ecosystem. Can’t wait to try it out!
Circle keeps expandin’ its stablecoin empire! USDC joinin’ Arbitrum’s L2 blockchain is a game-changer. With increased liquidity and improved user experience, this is gonna attract more people to the crypto world.
USDC on Arbitrum? That’s amazin’ news! Circle’s decision to launch on a layer two blockchain shows the potential of scaling solutions. This move will bring more efficiency and convenience to stablecoin users. Excitin’ times ahead!