Circle Announces USDC Multi-Chain Expansion and Transfers

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  • The second largest stablecoin in the world, it will be available across 13 different blockchain ecosystems.
  • The announcements were made during the opening conference of the annual Circle Converge22 event.
  • By the end of the year, the company hopes to have the Cross-Chain Transfer Protocol active.

Circle, the company that supports the issuance of USDC, announced that it will continue to expand to other blockchains, taking advantage of the successful Ethereum proof-of-stake upgrade. It also indicated that it will continue to accelerate its multi-chain transfer strategy this and next year.

During the inaugural conference at the Circle Converge22 event, the company announced that in the coming months it will launch USDC in Arbitrum and Optimism. It explained that with these leading “Layer 2” scaling solutions, USDC transactions will be faster, cheaper, and will have the shared security of the network.

“Developers will be able to leverage Circle’s APIs for fiat on-and-off ramps to and from USDC, further boosting the growth and accessibility of the Ethereum ecosystem,” Circle said in a press release.

The issuer of the world’s second largest stablecoin also said that it wants to focus on the announced improvements to the USDC platform at the end of September.

A Multi-Chain Future

Since 2018, when the cryptocurrency was launched on the Ethereum network, “we knew the future would be multi-chain,” the company said. Two years later, USDC was launched on Algorand and Solana, and in 2021 expanded to Avalanche, Hedera, Stellar and TRON.

This year the stablecoin was launched on Flow and bridged to the Polygon blockchain via the Circle Account API. By the end of the year, Circle plans to bring USDC to the NEAR protocol to allow developers to integrate stablecoin payment streams into their Rust and JavaScript-based decentralized applications.

Likewise, the company anticipates the launch of USDC in Polkadot through the Statemint parachain before the end of the year. In this way, developers will also be able to benefit from Polkadot’s shared security model, as well as the stablecoin’s ability to execute transactions on its Layer-1 blockchain ecosystem.

By the first quarter of 2023, Circle plans to bring USDC to Cosmos, the so-called “internet of blockchains.” It will do this using a generic asset issuance chain and interchain security, which allows the chain to inherit security from Cosmos Hub.

Upon completion of its expansion plan, USDC will be available across 13 different blockchain ecosystems. Developers using Circle’s APIs will then be able to “build the future of commerce,” Circle said.

USDC Cross-Chain Transfers

To complement its plan, Circle also hopes to launch its Cross-Chain Transfer Protocol by the end of 2022. “Users need a way to transfer and transact USDC across ecosystems, without needing to convert to a synthetic “bridged” version of USDC,” the company explained.

Through this new protocol, USDC will be able to be transferred between chains natively, which will greatly contribute to improving the trust, ease of use and liquidity of USDC, Circle said.

The Cross-Chain Transfer Protocol can be incorporated by developers into their respective dApps. Users will be able to instantly make any transaction from USDC to another compatible ecosystem without asking for permission.

On the Flipside

  • Circle has been criticized in the past for seeming disorganized and unfocused. It was concerned more with overcoming regulatory hurdles to take advantage of the competition, even being accused of over-compliance with government censorship.

Why You Should Care

  • With this new resource from Circle, developers have the ability to create new cross-chain dApps aimed at cryptocurrency trading, payments, lending, NFT gaming, and other functionalities.
  • USDC’s financial backing is based on cash and short duration US Treasury bills.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

Santiago is a Venezuelan blockchain reporter specializing in economic and financial issues, with special emphasis on stablecoin trading as well as political and regulatory issues related to Latin America. Every day he reviews and analyzes movements in the crypto market to offer readers first-hand information that can help them make sound decisions in the exciting world of crypto.