- Circle will soon deploy USDC on Arbitrum.
- Users will be able to redeem USDC 1:1 for USD on Arbitrum.
- Circle also listed other benefits of having natively deployed USDC on Arbitrum.
The current crypto bear market has been brutal to stablecoin issuers, especially those that operate primarily in the U.S.
However, Circle, the issuer of USDC, has continued to innovate. On Thursday, Circle released an exciting announcement about the Ethereum Layer-2 scaling project Arbitrum.
Circle to Deploy USDC on Arbitrum
Circle has been going through a lot lately, especially with the banking crisis in the U.S. and the challenging regulatory climate in the country.
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However, Circle isn’t backing down. On Thursday, the company behind the second-largest stablecoin in the market announced that it would natively deploy USDC on Arbitrum, the largest Ethereum Layer-2 scaling project.
Circle said in a blog post that natively deploying USDC on Arbitrum offers a variety of benefits.
“This will be the official version of USDC that is recognized within the Arbitrum ecosystem, and will ultimately replace the currently circulating bridged version of USDC that comes from Ethereum.”
One of the benefits of having USDC natively on Arbitrum is that users will be able to redeem their USDC 1:1 for USD. Circle said institutional on/off-ramps via them will also be enabled and supported by CCTP and smart contract upgradeability.
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The USDC deployment on Arbitrum will happen on June 8th. Before the deployment, Circle will rename the current bridged USDC to USDC.e.
On the Flipside
- Introducing two versions of USDC might increase liquidity fragmentation.
Why This Matters
Native USDC introduction on Arbitrum could spur stablecoin adoption and increase usage on the network.
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