Circle, the company behind the second-largest dollar-pegged crypto asset by market cap, has announced the launch of a new token standard for their stablecoin, USDC. The new standard, known as the Bridged USDC Standard, is designed to enable the deployment of a bridged form of USDC on Ethereum Virtual Machine (EVM) blockchains.
According to Circle, the Bridged USDC Standard is characterized by its permissionless, equitable, standardized, extensible, secure, and audited nature. The standard aims to provide a streamlined and consistent user experience while making USDC compatible with multiple blockchains via the Cross-Chain Transfer Protocol (CCTP).
The process for deploying the Bridged USDC Standard involves several key steps:
1. A third-party team follows the standard to deploy their bridged USDC token contract.
2. Bridged USDC is used to bootstrap initial liquidity in the ecosystem and begins to proliferate.
3. Bridged USDC reaches a significant supply, amount of holders, and number of app integrations.
4. Circle and the third-party team jointly elect to securely transfer ownership of the bridged USDC token contract to Circle.
5. Upon obtaining ownership, Circle upgrades bridged USDC to native USDC and seamlessly retains existing supply, holders, and app integrations.
In addition, Circle has already implemented the Bridged USDC Standard on Linea and Scroll testnets and mainnets. The company plans to further expand the standard to support modular EVM architectures and simplify the deployment of new blockchains with a pre-set bridged USDC token contract that is compatible by default.
Circle’s ultimate goal with the introduction of the Bridged USDC Standard is to propel USDC’s evolution and enhance its adoption in the blockchain ecosystem. The new token standard is expected to provide greater flexibility and interoperability for USDC across various blockchain platforms.
It is worth noting that the firm’s announcement regarding the Bridged USDC Standard also includes an invitation for readers to subscribe to their email list for the latest updates and news alerts related to the crypto space. Moreover, readers are encouraged to follow Circle on social media platforms such as Twitter and Facebook for real-time updates.
In conclusion, the launch of the Bridged USDC Standard represents a significant milestone for Circle and the broader crypto community. The new token standard is poised to drive further innovation and adoption of USDC across different blockchain networks, ultimately contributing to the advancement of the decentralized finance (DeFi) ecosystem.
As with any investment in the crypto space, investors are advised to conduct thorough due diligence and consider the associated risks before making any investment decisions. The Daily Hodl, where the original content was published, emphasizes the importance of responsible investing and advises readers to seek professional financial advice when considering high-risk investments in Bitcoin, cryptocurrency, or digital assets. As always, readers are encouraged to stay informed about the latest developments in the crypto space through reliable sources and to exercise caution when engaging in transactions involving cryptocurrencies and digital assets.