Circle launches 'bridged USDC standard' for deploying to new networks
Circle said its new standard eliminates the need for USDC "migrations," where users swap unofficial versions once the latter becomes available. ...
- Circle has introduced a new standard called the "bridged USDC standard" to simplify the process of launching its stablecoin, USDC, on new networks.
- The standard involves a two-phase process where a third-party developer initially controls the token contracts, and the token on the new network is backed by a native version on another network.
- In the second phase, Circle takes control of the contracts, and the token becomes backed directly by Circle's reserves, although this phase is not mandatory for all deployments.
- The token produced in the first phase is unofficial but serves as a proxy to USDC in any bridging-enabled ecosystem.
- If desired, Circle and the third-party developer can seamlessly upgrade the token to native issuance in the future.
- The new standard aims to eliminate the need for migrations, allowing unofficial tokens to become official without requiring users to swap them.
- Developers using the standard must follow specific guidelines, including using a bridge with upgrade functionality and refraining from upgrading the bridge once the token is issued.
- When transitioning the token to an official version, the third-party developer can freeze new mints on the bridge and reconcile bridging activity to align the total supply of native USDC.
- Ownership of the contract can then be transferred to Circle, resulting in the burning of native coins backing the tokens on the new network and direct backing by Circle's reserves.
- Circle previously launched native versions of USDC on Base network and Polygon.
The article presents a positive development by Circle, introducing a new standard to streamline the process of launching USDC on new networks. The standard aims to eliminate the need for migrations and provides flexibility for developers to upgrade tokens seamlessly.