Circle to launch USDC stablecoin on Ethereum scaling solution Arbitrum.
Circle, a US-based payments company that issues the stablecoin USD coin (USDC), is planning to launch its coin natively on Arbitrum, which is an Ethereum scaling solution. The launch is scheduled for June 8.
The Arbitrum Foundation announced on June 1 that USDC issued by Circle will be native to Arbitrum.
The entity states, “This will be the official version of USDC that is recognized within the Arbitrum ecosystem, and will ultimately replace the currently circulating bridged version of USDC that comes from Ethereum.”
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The Arbitrum Foundation believes that the forthcoming launch and resulting native USDC on Arbitrum will generate a number of benefits. Among others, the token will be:
- fully reserved and always redeemable in the ratio of 1:1 per US dollar;
- enabled with institutional on/off ramps via Circle as well as other partners;
- backed by forthcoming support by Cross-Chain Transfer Protocol (#CCTP) to eliminate bridge withdrawal delays;
- supported by an upgradeable smart contract for future enhancements by Circle.
Before the launch of native USDC on June 8th, the Ethereum-bridged version of USDC on block explorers will be renamed by Arbitrum Foundation as “USDC.e”. There will also be outreach to ecosystem apps to make the same change in their app UI and documentation.
Close cooperation with ecosystem apps
According to the entity, the team behind Arbitrum will be closely collaborating with ecosystem apps in a bid to ensure a smooth transition of liquidity from bridged USDC to native USDC over time. There will be no immediate changes to the Arbitrum Bridge, and it will continue to operate normally for bridging USDC to and from Ethereum.
Circle plans to bring the Cross-Chain Transfer Protocol to Arbitrum following the scheduled launch of the native USDC. This will enable USDC to move natively to-and-from Ethereum (and other supported chains) in minutes, with no more withdrawal delays, according to the foundation.
The Arbitrum Foundation announced on March 16 that the day marked the launch of The Arbitrum Foundation and DAO Governance for the Arbitrum One and Arbitrum Nova networks. Arbitrum has become the first EVM rollup technology to achieve the second stage of decentralization. The statement also mentioned that the Arbitrum token would give governance power to the DAO, and that 12.75% of the $ARB token supply would be airdropped on March 23.
