Circle, a fintech pioneer in the digital currency industry, has announced that on June 8, 2023, it will launch the USD Coin (USDC) natively on the Arbitrum platform. This revolutionary development is intended to provide users with a smooth, robust, and frictionless experience.
The primary innovation brought about by this launch is that the USDC issued by Circle will be native to Arbitrum. Consequently, it will be recognized as the official version of USDC within the Arbitrum ecosystem. The expectation is that native USDC liquidity will grow over time, gradually replacing the liquidity originating from Ethereum.
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
Advantages of Native USDC
The native USDC comes with numerous benefits. It will be fully reserved and perpetually redeemable at a 1:1 ratio with US dollars. Institutional on/off-ramps through Circle and its partners will be facilitated, and the upcoming Cross-Chain Transfer Protocol (CCTP) support will eliminate delay withdrawals, enhancing efficiency and the user experience.
Before the launch, the Ethereum-bridged version of it will be renamed “USDC.e.” This change is more than a cosmetic alteration. It will enable users to distinguish between the bridged and native versions of the coin. Furthermore, Circle is reaching out to ecosystem apps, requesting them to implement this change in their user interfaces and documentation.
Ensuring A Smooth Transition
The Arbitrum Foundation guarantees a smooth transition from bridged USDC to native USDC. It will collaborate closely with ecosystem apps to facilitate this gradual shift. The Arbitrum Bridge will continue operating as usual, bridging it to and from Ethereum.
Circle plans to introduce the Cross-Chain Transfer Protocol (CCTP) to Arbitrum once native USDC is launched. This innovation will enable users to move it natively to and from Ethereum and other supported chains within minutes, effectively eliminating long withdrawal delays.
The forthcoming launch of native USDC on Arbitrum is a milestone event that portends a brighter future for the global cryptocurrency market. Circle’s commitment to this ecosystem and its constant efforts to enhance efficiency and utility bode well for the entire industry. The community is eagerly anticipating this exciting new chapter in the crypto market set to unfold on June 8th.
Compiled by Coinbold