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The integration marks a progressive step in improving liquidity and usability in zkSync, a layer-2 scaling solution for Ethereum (ETH) that uses zero-knowledge proofs to improve efficiency and reduce costs. The blog explains that in anticipation of the launch of its own $USDC, the Ethereum-bridged form of $USDC in block explorers such as the zkSync Era Block Explorer will be renamed $USDC.e to distinguish between the upcoming $USDC and its predecessor.
According to Circle’s latest blog post, the upcoming native $USDC on zkSync will usher in a new era of seamless transactions and integration options for both developers and institutional users. $USDC issued by Circle will be built into zkSync and is the official form of $USDC for the zkSync ecosystem. The transition to native support is expected to gradually move current liquidity from bridged $USDC to the new native format.
The inherent benefits of native $USDC on zkSync are its status as a regulated, fully reserve stablecoin that can always be redeemed for US dollars at a 1:1 ratio. Additionally, it will facilitate institutional on- and off-ramps, such as Circle Mint, for eligible users and enable easy integration into existing decentralized applications (dApps).
Image: Ledger Insights