Circle launches 'bridged USDC standard' for deploying to new networks


21 Nov 2023 4:02 PM

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.

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You May Ask

What is the purpose of Circle's new "bridged USDC standard"?How does the two-phase process work in launching USDC on new networks?What happens if Circle and the third-party developer decide to make the token official?How does the new standard eliminate the need for migrations?Which networks have Circle previously launched native versions of USDC on?

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