Circle Launches Bridging Standard for Stablecoin Deployment on New Networks
In a first-ever announcement in the stablecoin ecosystem, Circle, makers of USDC, has released a bridging standard for its digital token.
Making the announcement in a November 21 blog post, the fiat-backed stablecoin maker pointed out the need to help developers bootstrap stablecoin liquidity in new networks.
The initiative is driven by the challenges posed by the rapid expansion of layer-1, layer-2, and layer-3 blockchain protocols, making native stablecoin issuance impractical. This makes it impossible for Circle to make new USDC deployments.
Introducing Bridged USDC Standard, a new way to expand access to $USDC & reduce fragmentation.
EVM blockchain & rollup teams can now deploy a bridged USDC token contract with optionality for Circle to seamlessly upgrade to native issuance in the future.https://t.co/suSgllMQoQ
— Circle (@circle) November 21, 2023
To address this issue, a new set of guidelines was introduced to enable the use of bridged USDC on new Ethereum Virtual Machine (EVM) compatible protocols.
This new bridged form of USDC will offer the option of being seamlessly upgraded to its native counterpart in the future.
Providing more details, the second largest fintech stablecoin company revealed that all bridged USDC will be fixed under the “unofficial” category and will not be issued or be eligible for redemption through its major platform.
Instead, they would serve as a proxy to the regular USDC stablecoin that will make it tenable for them to be used on any platform where bridging of the tokenized dollar asset is possible.
To offer bridged USDC on any new blockchain protocol, developers must go through two key processes.
In the first phase, the third-party developer will leverage the guidelines outlined in the standard to
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