Circle’s USD Coin (USDC) will soon be launched natively on Coinbase’s Base network, according to a tweet by Circle CEO Jeremy Allaire on August 29. This new version of USDC will replace the current USD Base Coin (USDbC) that is currently being used as a substitute by most users.
Coinbase’s Base network was officially launched on August 9, but at that time, there was no native version of USDC available on the network. Users were unable to deposit cash into a Circle account and receive an equivalent amount of USDC on Base. To address this issue, the Base team created a bridge app that allows users to bridge USDC from Ethereum. The token issued by the bridge is called USDbC and is backed by native USDC locked on the Ethereum network.
The recent announcement by Circle states that they will soon start issuing USDC directly on Base, eliminating the need for a bridged coin backed by the Ethereum version. The contract for the new token has already been deployed on Base, and on the launch day, the team will provide instructions on how to redeem the current USDbC for native USDC. They will also work with ecosystem apps to facilitate a smooth transition for liquidity providers who currently provide liquidity for USDbC. The Base bridge that issues USDbC will continue to operate normally for the time being.
While Circle has not specified the exact date of the official launch, Allaire mentioned in his tweet that it will happen sometime “next week.” This move is expected to benefit users by providing a more seamless experience for using USDC on the Base network.
Since its launch, the Base network has gained over 136,000 active users on August 10. This indicates a strong interest in the platform and its potential. On August 25, Base announced its plan to share revenue and participate in the governance of the upcoming “Superchain,” which will include Base, Optimism, and other networks. This highlights the network’s commitment to fostering collaboration and innovation within the cryptocurrency ecosystem.
The integration of native USDC on Base will further enhance the usability and accessibility of the stablecoin. As USDC continues to gain traction as a reliable and widely accepted digital asset, its availability on more networks will contribute to its growth and adoption. Users will be able to leverage the advantages of USDC, such as fast and low-cost transactions, while enjoying the benefits of the Base network’s features and ecosystem.
In conclusion, the launch of native USDC on Coinbase’s Base network is a significant development for the cryptocurrency industry. It will provide users with a more efficient and streamlined way to use USDC on Base, eliminating the need for bridged coins and enhancing liquidity provision. The success of this integration will further bolster the position of USDC as a leading stablecoin and contribute to the growth and adoption of both Circle and Coinbase’s respective platforms.
