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Circle has announced the integration of its USDC stablecoin natively into the zkSync ecosystem.
The integration marks a progressive step in enhancing liquidity and usability within zkSync, a layer 2 scaling solution for Ethereum (ETH) that leverages zero-knowledge proofs for increased efficiency and reduced costs.
According to the latest blog post from Circle, “The forthcoming native USDC on zkSync is set to usher in a new era of seamless transactions and integration capabilities for developers and institutional users alike. USDC, issued by Circle, will be native to zkSync and is the official form of USDC for the zkSync ecosystem.”
The transition to native support is anticipated to gradually shift the current liquidity from the bridged USDC —originally from Ethereum and moved to zkSync via the zkSync Era Bridge — to the new native format.
1/ Drumroll… native $USDC is coming soon to @zkSync!
— Circle (@circle) March 28, 2024
zkSync is a leading Layer 2 blockchain that is hyperscaling Ethereum through zero-knowledge tech and built-in account abstraction.
Explore what native USDC will mean for zkSync and how to migrate from bridged USDC.… pic.twitter.com/Y2ROVS4Hba
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USDC has been the leading entity on @zksync in the past, as per our Macro Dashboard
— Nansen 🧭 (@nansen_ai) March 28, 2024
Cheap, fast, and secure transactions – no wonder demand is highhttps://t.co/lMCbWQzkio pic.twitter.com/B3n7xTtJSB
The inherent benefits of native USDC on zkSync include its status as a regulated, fully reserved stablecoin that is always redeemable 1:1 for U.S. dollars. Additionally, it will facilitate institutional on- and off-ramps like Circle Mint for eligible users and ensure easy integration into existing decentralized applications (dApps).
The blog explains that “Ahead of the launch of native USDC, the Ethereum-bridged form of USDC on block explorers like zkSync Era Block Explorer will be renamed USDC.e” to distinguish between the upcoming native USDC and its predecessor.
Circle recently partnered with Solana to bring USDC and its cross-chain transfer protocol to its blockchain ecosystem.
Read more: Investors withdraw $350m worth of ETH, USDT, USDC from KuCoin