Circle Officially Supports Native USDC On Layer 2 Arbitrum
- Circle finally rolled out its native USDC on layer 2 Arbitrum.
- Arbitrum USDC may now be used by businesses to expand their consumer base and get access to crypto capital markets.
- The version bridged from Ethereum will have the new display token USDC.e, and the ticker of the native token version on Arbitrum will be USDC.
The stablecoin issuer Circle launched its native USDC on Arbitrum, the leading layer 2 scaling solution for Ethereum, on Thursday.
Previously, Circle had said that it would launch a native token version of USDC on Arbitrum today. Moreover, the liquidity of the “bridged USDC” token version (that is, the version transferred from ETH) will be progressively phased out and replaced by a new token version.
Companies with a Circle account may now use Arbitrum USDC and easily transfer USDC between supported chains, avoiding the expenses and delays associated with bridging. According to the statement, Arbitrum USDC will be supported by Aave, Balancer, Camelot, Coinbase, Curve, GMX, Radiant, Trader Joe, and Uniswap.
Companies may use the Circle Account and Circle APIs to access Arbitrum USDC and benefit from the Arbitrum network’s quicker settlement times and reduced costs.
Arbitrum is an Ethereum layer 2 scaling solution created by Offchain Labs. It employs Optimistic Rollup technology to quickly grow transaction throughput for decentralized applications while maintaining the security provided by the Ethereum blockchain. It is currently the seventh blockchain that supports USDC.
Circle officially issues Native USDC, which is always redeemable 1:1 for US dollars. Arbitrum also has a “bridged” variant of USDC called USDC.e, which has been bridged from Ethereum. Circle does not issue USDC.e. The version bridged from Ethereum, in particular, will feature a new display token of USDC.e. The native token version on Arbitrum will have the ticker USDC.
The launch of USDC on Arbitrum follows a problem in the layer 2 scaling solution’s Sequencer software that led the network to momentarily cease verifying transactions on-chain yesterday.
Circle is anticipated to incorporate the CCTP (Cross-Chain Transfer Protocol) bridge technology with the Arbitrum ecosystem in the future. This step will accelerate the transfer from Ethereum to Arbitrum and provide consumers with a fully native version of USDC.
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