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- The launch of native USDC on Arbitrum improves liquidity and operational efficiency.
- Integration of CCTP with Arbitrum will reduce withdrawal times.
On June 8, 2023, Circle, a leading fintech entity in the digital currency sector, plans to introduce the USD Coin (USDC) natively on the Arbitrum platform. This significant advancement aims to provide users with a seamless, robust, and frictionless experience.
1/ Circle is launching USDC natively on @Arbitrum on June 8th!
Keep scrolling or read the blog to learn more about this launch and how to migrate liquidity from “bridged USDC” to native USDC. https://t.co/tbxSmUvXso— Circle (@circle) June 1, 2023
The primary innovation with this launch is that the USDC issued by Circle will be recognized as the native version within the Arbitrum ecosystem. Over time, the liquidity of native USDC is anticipated to expand and gradually supplant the bridged liquidity that originates from Ethereum.
Benefits of Native USDC
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The native USDC offers numerous advantages. It will be fully backed and consistently redeemable at a 1:1 ratio with US dollars. This initiative will facilitate institutional on/off-ramps through Circle and its partners. Furthermore, the forthcoming support for the Cross-Chain Transfer Protocol (CCTP) will remove bridge withdrawal delays, improving efficiency and user experience.
Prior to the launch, the Ethereum-bridged version will be renamed “USDC.e.” This adjustment is not merely cosmetic; it will assist users in differentiating between the bridged and native versions of the currency. Additionally, Circle is reaching out to ecosystem applications to implement this change in their user interfaces and documentation.
Facilitating a Smooth Transition
The Arbitrum Foundation is committed to ensuring a smooth transition from bridged USDC to native USDC. It will collaborate closely with ecosystem applications to support this gradual change, while the Arbitrum Bridge will continue to function as usual for bridging to and from Ethereum.
One of the most promising future developments is Circle’s intention to launch the Cross-Chain Transfer Protocol (CCTP) on Arbitrum following the introduction of native USDC. This would allow users to transfer it natively to and from Ethereum (and other supported chains) within minutes, thereby eliminating lengthy withdrawal delays.
The upcoming launch of native USDC on Arbitrum marks a significant milestone. Circle’s dedication to this ecosystem and its ongoing efforts to enhance efficiency and utility suggest a positive outlook for the global cryptocurrency market. As June 8 approaches, the community looks forward to this new chapter in the crypto landscape.
