Circle, the force behind the second-largest dollar-pegged cryptocurrency, has unveiled the Bridged USDC Standard.
This innovative token standard aims to tackle fragmentation by deploying a bridged form of USDC on Ethereum Virtual Machine (EVM) blockchains.
The process begins with a third-party team adhering to the standard to deploy their bridged USDC token contract.
This fosters initial liquidity, leading to widespread adoption.
Upon reaching a substantial supply, holders, and app integrations, Circle and the third-party team collaboratively opt for a secure transfer of ownership.
Once in control, Circle seamlessly upgrades the bridged USDC to native USDC, preserving the existing supply, holders, and app integrations.
Circle emphasises that the Bridged USDC Standard offers a permissionless, equitable, standardised, extensible, secure, and audited framework.
It is designed to create a smoother and less fragmented user experience. Moreover, this standard makes USDC compatible with various blockchains through the Cross-Chain Transfer Protocol (CCTP).
The Bridged USDC Standard has already undergone testing on Linea and Scroll testnets and mainnets.
Circle plans to extend this standard’s support to modular EVM architectures, simplifying the deployment of new blockchains with a pre-set bridged USDC token contract compatible by default.
Circle envisions the Bridged USDC Standard as a significant leap in USDC’s evolution.
By fostering compatibility across multiple blockchains, it aims to amplify USDC’s adoption within the blockchain ecosystem.