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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