In a move set to enhance the functionality of the Arbitrum ecosystem, Circle, the “global financial technology company helping money move at internet speed,” has announced the upcoming launch of its stablecoin, USDC, on the platform. Slated for June 8, 2023, this development will replace the existing Ethereum-bridged version of USDC with a native version.
The introduction of native USDC will bring several benefits to the Arbitrum ecosystem. The stablecoin will be fully backed and can be redeemed on a 1:1 basis for US dollars. It will also facilitate institutional on/off-ramps through Circle and its partners. Moreover, the native USDC will be compatible with the forthcoming Cross-Chain Transfer Protocol (CCTP), which aims to eliminate delays associated with bridge withdrawals. The smart contract underpinning USDC will also be upgradeable, paving the way for Circle to implement future enhancements.
Arbitrum will rebrand the Ethereum-bridged version of USDC as “USDC.e” on block explorers in preparation for this launch. This change will also be reflected in the user interfaces and documentation of ecosystem apps.
While the Ethereum-bridged USDC, now referred to as USDC.e, will retain its current token address, the newly introduced native USDC will have a distinct token address.
Arbitrum is collaborating with ecosystem apps to facilitate a seamless transition of liquidity from the bridged USDC to the native version over time. The Arbitrum Bridge will continue to support the bridging of USDC to and from Ethereum without any immediate changes.
Following the launch of native USDC, Circle plans to integrate the Cross-Chain Transfer Protocol (CCTP) into Arbitrum. This integration will enable the native movement of USDC between Ethereum and other supported chains in a matter of minutes, thereby eliminating withdrawal delays.