Bitrabo Editorial
Circle, the firm behind the stablecoin USD Coin, will release a native version of the token on the Arbitrum network. This move is expected to improve transaction speeds and interoperability within the blockchain community. The launch date for the new native USD Coin token is scheduled for June 8.
Transitioning to Native USDC on Arbitrum
In an official blog post, Circle detailed its plan to replace the current Ethereum-based bridged USDC with the new native token, which will operate directly on the Arbitrum network and become the official version of USD Coin. The transition will eventually phase out the bridged version originating from Ethereum. Circle aims to expedite transactions through the use of cross-chain transfer protocols (CCTPs) that enable USDC to move natively to and from Ethereum and other supported chains, achieving faster transfer times and eliminating withdrawal delays.
The graph below shows the market capitalization of USDC at $28.9 billion:
USDC market cap at $28.9 billion | Source: Market Cap USDC on TradingView.com
Stablecoin Market Trends and Circle’s Strategy
Circle’s move to introduce a native version of USDC on the Arbitrum network seeks to enhance transaction speeds and encourage interoperability within the cryptocurrency ecosystem. Many stablecoin companies, including Circle, have experienced a decline in market share over the past year, but USDT’s market share has grown, with a market capitalization of more than $83 billion.
The native USDC release on Arbitrum allows streamlining of USDC movement between Ethereum and other supported chains. With a market cap of $28.9 billion, USDC is the second-largest stablecoin and the fifth-largest cryptocurrency, having maintained its peg to the US dollar since a brief period of disruption in May.
As the stablecoin market evolves, the impact of Circle’s strategic decision on its market position and broader USDC adoption remains to be seen.
Featured image from Ledger Insights, Chart from TradingView.com