- Native liquidity of the stablecoin is expected to increase
- Cross-Chain Transfer Protocol on Arbitrum will eliminate withdrawal delays
- Upgradable smart contracts will make enhancements possible
Circle is launching its USDC stablecoin on Arbitrum natively on June 8, 2023 to replace its currently circulating bridged version from the Ethereum Mainnet, Bankless Times learned from a press release. Before the launch, Circle will change the Ethereum-bridged version’s name to USDC.e.
Native USDC liquidity will grow with time
Circle will make the same changes to the documentation UI of other apps in the ecosystem. Native liquidity of the stablecoin is expected to increase with time. Eventually, it will replace the bridged liquidity coming from Ethereum.
Bringing CCTP to Arbitrum
According to Circle, the main advantage of the launch is bringing Cross-Chain Transfer Protocol (CCTP) to Arbitrum. This would do away with withdrawal delays. Other advantages include the option to introduce ramps for institutional clients and upgradable smart contracts, which will make future smart contract enhancements possible.
Smooth transition of liquidity
Circle assured its network apps and Arbitrum would collaborate to make sure the transition from bridged to native liquidity is smooth. The Arbitrum Bridge will continue functioning as usual during the transition period.
Circle has plans to move the CCTP to other blockchains at the end of this year as well. Earlier, Circle VP of Product Joao Reginatto explained that the CCTP would lend USDC native interoperability throughout Web3, adding this would help solve issues with DeFi liquidity and capital inefficiency:
With CCTP, developers can simplify the user experience, and their users can trust that they are always transacting with a highly liquid, safe, and fungible asset in native USDC. This milestone makes USDC a natively multi-chain digital dollar.
Circle launches Euro Coin on Avalanche
Last week, Circle launched its stablecoin Euro Coin on Avalanche, the first in an anticipated series of blockchain launches for the reserved euro-backed currency to help deliver speedier, more efficient financial services to developers and regular users.
