Blockchain

Circle Partners With Axelar To Enable USDC To Be Used In Cross-chain Applications

Circle and Axelar have launched a collaboration centered on the usage of USDC and cross-chain applications.

The first chains that use Axelar’s General Message Passing (GMP) will be Avalanche, Cosmos, Ethereum, Polygon, and Sui. The announcement follows Circle’s unveiling of their native USDC bridging protocol last month.

When a user bridges an asset, the token they receive on the other end is non-native, which means it is a synthetic version that is vulnerable to liquidity concerns and security flaws if the bridge is attacked and hacked. Axelar’s co-founder Sergey Gorbunov said:

“Composing Circle USDC Bridge with Axelar General Passing is a key step to achieve global interoperability across dApps on different chains.”

Circle, in essence, supervises and validates the flow of native USDC between chains, eliminating the requirement for wrapped assets. Axelar’s GMP extends this approach by allowing apps to integrate Circle’s bridge.

One of the partnership’s primary aims is to simplify the cross-chain user experience. Cross-chain swaps, one-click trade execution, and cross-chain NFTs are examples of novel application use cases.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.