Circle integrates native USDC into zkSync ecosystem

Circle has announced the integration of its USDC stablecoin natively into the zkSync ecosystem.

The addition of this feature signifies a significant advancement in improving the accessibility and functionality of zkSync, an Ethereum (ETH) layer 2 scaling technique that utilizes zero-knowledge proofs to boost effectiveness and decrease expenses.

In simple terms, the upcoming USDC on zkSync, as mentioned in Circle’s recent blog post, will bring about effortless transactions and enhanced integration opportunities for both developers and institutional users. USDC, which is issued by Circle, will be specifically designed for use within zkSync, making it the authorized form of USDC for that ecosystem.

Over time, we expect the liquidity from the currently bridged USDC (previously based on Ethereum and now transferred to zkSync through the zkSync Era Bridge) to gradually move to the new native format, resulting in a shift away from the bridged version.

Announcement: Native USD Coin (USDC) is set to join the zkSync community soon! zkSync, a trailblazing Layer 2 blockchain, is enhancing Ethereum’s capabilities through zero-knowledge technology and account abstraction. Discover the implications of having native USDC on zkSync and learn how to transition from using bridged USDC.

— Circle (@circle) March 28, 2024

USDC has held the top position among entities using Zksync, based on our macro data analysis. Its affordability, speed, and security have made it a popular choice, resulting in significant demand.

— Nansen 🧭 (@nansen_ai) March 28, 2024

USDC running natively on zkSync comes with several advantages. Firstly, it’s a stablecoin that’s regulated and fully backed by the U.S. dollar, meaning it can be redeemed for one dollar for every USDC token. Secondly, institutions can easily use it through platforms like Circle Mint, while developers can seamlessly incorporate it into their decentralized apps.

Before the introduction of native USDC on Ethereum, the previously used Ethereum-linked USDC tokens, visible on block explorers such as zkSync Era Block Explorer, will be renamed as USDC.ether to differentiate between the two forms.

More recently, Circle announced a collaboration with Solana for introducing USDC and its inter-chain transfer mechanism into Circle’s blockchain community.

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2024-03-28 19:51