Fintech firm and stablecoin issuer Circle has announced that native USDC is now available on the leading layer 2 rollup, zkSync, thereby making it accessible to developers and users without the need for bridging.

With the latest inclusion, USDC is now supported on a total of 16 blockchain networks.

USDC on zkSync

In its official blog post on April 9th, Circle revealed that numerous prominent ecosystem applications and DeFi protocols are anticipated to embrace native USDC on zkSync for various purposes, such as payments, trading, borrowing, lending, and beyond.

Among these is Koi Finance, which is one of the prominent zkRollup defi platforms built on zkSync Era, along with the decentralized exchange SyncSwap and the lending protocol ZeroLend.

“We’re excited to announce that native USDC is now available on zkSync and accessible to developers and users – no bridging required. Circle Mint and Circle APIs now fully support USDC on zkSync.”

Circle went on to highlight the advantages of utilizing native USDC in financial transactions. Firstly, as a regulated asset, it offers stability and assurance, being fully backed and redeemable at a 1:1 ratio for US dollars at any given time.

Secondly, its native status enables seamless integration into institutional on/off-ramps, such as Circle Mint, streamlining processes for institutions and users alike.

Additionally, its compatibility allows for incorporation into existing applications, offering a straightforward solution for businesses looking to incorporate stablecoin functionalities into their platforms.

Native Vs. Bridged USDC

The native USDC, officially issued by Circle, maintains a consistent 1:1 redeemability for US dollars. However, there’s also a variant of USDC termed as USDC.e on zkSync, which is essentially USDC transferred from Ethereum through a bridge mechanism. It’s crucial to note that this bridged USDC (USDC.e) is not issued by the company.

The latest announcement comes weeks after Circle unveiled the integration of its USDC stablecoin into the zkSync ecosystem.

The post Circle’s USDC Stablecoin Lands on zkSync Layer 2 Rollup appeared first on CryptoPotato.

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Filed under: Bitcoin - @ April 10, 2024 10:12 pm