Circle to launch ‘official version’ of USDC natively on Arbitrum

Circle lately introduced plans for a June 8 launch of a brand new native model of its USD Coin (USDC) stablecoin on the Arbitrum community.

Based on a weblog submit, Circle will exchange the present model of USDC, an Ethereum-based token that’s been bridged to Arbitrum, with a local token that runs and resides on the Arbitrum community itself:

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“This would be the official model of USDC that’s acknowledged throughout the Arbitrum ecosystem and can in the end exchange the presently circulating bridged model of USDC that comes from Ethereum.”

Forward of the launch, Circle plans to rename the present Ethereum-based model of USDC to “USDC.e.” The unique model will probably be listed as “bridged USDC” and the brand new Arbitrum-based model will don the “USDC” mantle.

The purpose of this endeavor, in accordance with Circle, is to hurry up transactions via using cross-chain switch protocols (CCTPs).

CCTPs are protocols that deal with the switch of belongings between blockchains, permitting customers to unify liquidity and help each crypto and Web3 belongings throughout portfolios.

“This can allow USDC to maneuver natively to-and-from Ethereum (and different supported chains) in minutes,” writes the Arbitrum group, including “no extra withdrawal delays.”

The modifications to USDC comes as the general marketplace for stablecoins — cryptocurrencies reminiscent of USDC designed to commerce at or near the precise worth of a fiat forex — has trended negatively for many firms within the area over the previous 12 months.

Associated: USDT market share jumps amid economic uncertainty, but USDC shrinks

Circle’s been no exception, because it noticed its personal market share decline considerably over the previous 12 months. USDC’s market capitalization has shrunk from $55 billion to $29 billion over that interval, in accordance with Coingecko information.

One of many few outliers bucking the development seems to be Tether, whose USDT stablecoin rose from a market share of 47.04% in 2022 to 65.89% in 2023, bringing its market capitalization to simply over $83 billion.