Circle, the company behind the USDC stablecoin, is pleased to announce that USDC is now available natively on Arbitrum and accessible to developers and their users without the need for bridging. Businesses may utilize Arbitrum USDC and take advantage of the network’s faster settlement times and lower costs by using the Circle Account and Circle APIs.
Arbitrum
Arbitrum is an Ethereum layer 2 (L2) scaling solution created by Offchain Labs. Arbitrum uses Optimistic Rollup technology to rapidly grow transaction throughput for decentralized apps while maintaining the security provided by the Ethereum blockchain.
With more than $2.2 billion in Total Value Locked (TVL) as of June 7, 2023, Arbitrum is one of the largest networks with substantial digital asset liquidity and an expanding developer ecosystem. Companies may now use Arbitrum USDC to expand their client base, gain access to crypto capital markets, and enjoy cheaper costs and faster payment times.
Understanding the difference between native and bridged
Circle introduces USDC to new blockchains in order to enable developers to build on a strong foundation that is unique to a given blockchain network. Native USDC, which Circle formally issues, is always convertible into US dollars at a 1:1 ratio.
Additionally, USDC.e, a version of USDC that has been “bridged” from Ethereum, is available on Arbitrum. USDC.e is not distributed by Circle.
Native USDC on Arbitrum:
- Token Name: USD Coin
- Token Symbol: USDC
- Token Address: 0xaf88d065e77c8cC2239327C5EDb3A432268e5831
Bridged USDC on Arbitrum: (from Ethereum)
- Token Name: Bridged USDC
- Token Symbol: USDC.e
- Token Address: 0xFF970A61A04b1cA14834A43f5dE4533eBDDB5CC8
Arbitrum will collaborate with ecosystem apps to facilitate a gradual shift of liquidity from bridging USDC to native USDC.
Coinbase, for example, is a worldwide digital asset exchange that allows users to effortlessly withdraw Arbitrum USDC to a digital wallet, such as Coinbase Wallet.
Enabling new usage cases
Arbitrum USDC could possibly be accessed by exchanges, fintech, institutional traders, and developers via the Circle Account and Circle APIs for a variety of use cases:
-Making programmed payouts in seconds all around the world
-Trading, borrowing, and lending on for example Camelot, GMX, and Uniswap applications
-Payment acceptance for e-commerce, NFT markets, and gaming
The Circle Account and Circle APIs also make it simple to exchange USDC across the 9 supported blockchains.
