Circle recently announced plans to launch a new native version of its USD Coin stablecoin on June 8 (USDC) on the Arbitrum network.
1/ Circle is launching USDC natively on @Arbitrum on June 8th!
Keep scrolling or read the blog to learn more about this launch and how to migrate liquidity from “bridged USDC” to native USDC. https://t.co/tbxSmUvXso
—Circle (@circle) June 1, 2023
1/ Circle will launch USDC natively on @Arbitrum on June 8.
Keep browsing or read the blog to learn more about this release and how to migrate liquidity from “bridged USDC” to native USDC.
According to a blog post, Circle will replace the existing version of USDC, an Ethereum-based token that has been connected to Arbitrum, with a native token that runs and resides on Arbitrum’s own network:
“This will be the official version of USDC that is recognized within the Arbitrum ecosystem and will ultimately replace the currently circulating bridge version of USDC that comes from Ethereum.”
Before launch, Circle plans to rename the existing Ethereum-based version of USDC to “USDC.e.” The original version will be listed as “bridged USDC” and the new Arbitrum-based version will be named “USDC”.
6/ Native USDC issued by Circle
– Token Name: USD Coin
– Token Symbol: USDC
– Token Address: 0xaf88d065e77c8cC2239327C5EDb3A432268e5831—Circle (@circle) June 1, 2023
The goal of this effort, according to Circle, is to speed up transactions through the use of cross-chain transfer protocols (CCTP).
CCTPs are protocols that manage the transfer of assets between blockchains, allowing users to unify liquidity and support both crypto assets and Web3 assets in portfolios.
“This will allow USDC to move natively to and from Ethereum (and other supported chains) in a matter of minutes”writes the Arbitrum team, adding “no more withdrawal delays”.
The changes in USDC come as the general market for stablecoins – cryptocurrencies like USDC designed to trade at or near the exact value of a fiat currency – has trended negatively for most companies in the space over the past 12 months.
Circle has been no exception, having seen its own market share drop significantly over the past 12 months. USDC’s market capitalization has shrunk from $55 billion to $29 billion in that period, according to Coingecko data.
One of the few outliers bucking the trend appears to be Tether, whose USDT stablecoin went from a 47.04% market share in 2022 to 65.89% in 2023, bringing its market capitalization to just over $83 billion.
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