The post Circle introduces Bridged USDC Standard appeared on BitcoinEthereumNews.com.

Circle has introduced the Bridged USDC Standard for two core objectives: expanded access to USDC and reduced fragmentation. USDC is live on 15 blockchains, with the possibility that more networks could join the ecosystem in the future. They would look to solve the cold start issue, thereby facilitating the requirement of what Circle deems important to start with right now. Simply put, there is a difference between Native USDC and Bridged USDC, with Native USDC having more recognition considering it is issued by Circle, which is a regulated Fintech. On the other hand, a third party creates Bridged USDC, which instills a sense of diffidence. Circle solves the problem by enabling developers to deploy Bridged USDC on EVM blockchains. They have an option for Circle, which can be enabled to transition to Native USDC anytime in the future. The overall mechanism begins with the third-party team deploying the Bridged USDC token contract. Next, the deployment is used to bootstrap the initial liquidity. It soon reaches sufficient supply, number of application integrations, and number of holders. This fuels Circle to collaborate with third parties to securely transfer the ownership of Bridged USDC to Circle, which then bridges it to native USDC. Circle and the third party ensure no change to the number of holders, supply, and application integrations. This ensures that the end-user experience is seamless, convenient, and streamlined. It aids in overcoming the challenges of migration learning and liquidity fragmentation. The advantages of the Bridged USDC Standard vary according to the category of the community member. Users, for example, can use Bridged USDC for payments, borrowing, storing, and lending without worrying about converting it to Native USDC. They no longer need to switch to a new asset. Similarly, blockchains can claim Bridged USDC and later convert it to Native USDC.…

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Filed under: News - @ November 22, 2023 3:14 pm