Circle’s USD Coin (USDC) has launched natively on both the Base and Optimism networks, expanding its reach and providing more options for Circle account holders. This development allows users to send the stablecoin from their Circle accounts to either network. In addition, Coinbase has also enabled USDC transfers to Base.
The launch of USDC on Base comes after Coinbase’s Base network was officially launched on August 9. However, at the time, users were unable to send USDC to the Base network from their exchange accounts, forcing them to rely on a bridged version of USDC called “USDbC” for U.S. dollar transactions. Circle CEO Jeremy Allaire previously announced that a native version of USDC would be available on Base, without providing a specific date. Now, with the latest announcement on September 5, USDC is officially available on Base, and Coinbase’s interface shows an option to transfer USDC to Base.
Despite the official launch, some decentralized exchanges on the Base network still use the old version of USDC. Uniswap, BaseSwap, Aerodrome, Maverick, and others continue to display the old contract address for USDC. This suggests that the integration of the new version has not been fully implemented by these DEXs yet.
In addition to the Base network, USDC has also been launched on Optimism. This release replaces the previously used USDC.e token on the network. Similar to Base, the new version of USDC has not been fully integrated with Optimism’s DEXs at the time of publication.
Related Post
Circle’s move to launch USDC on multiple networks is part of its efforts to regain market share lost to Tether earlier in 2023. However, Circle faces increased competition with the introduction of two new stablecoins during the summer. First Digital USD (FDUSD) was launched in June, and Binance started promoting it in August. Furthermore, PayPal launched its own stablecoin, PayPal USD (PYUSD), on August 7.
Circle is also working with ecosystem partners to develop a system that allows users to swap the old, bridged versions of USDC for the new and official versions. This initiative aims to streamline the transition and ensure a smooth migration of the stablecoin.
The expansion of USDC to both the Base and Optimism networks provides Circle account holders with more flexibility and options for using the stablecoin. It allows for seamless transfers between different networks and opens up opportunities for various decentralized applications and exchanges. With the launch of USDC on these networks, Circle aims to solidify its position in the stablecoin market and provide a reliable and widely accessible digital asset.
