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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