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Circle Launches New ‘Bridged USDC Standard’ To Reduce Fragmentation Across Chains

source-logo  dailyhodl.com 21 November 2023 23:13, UTC

The firm behind the second-largest dollar-pegged crypto asset by market cap is launching a new token standard for their stablecoin.

According to a new announcement, Circle is introducing the Bridged USDC Standard, a new standard and process for deploying a bridged form of USDC on Ethereum Virtual Machine (EVM) blockchains.

Circle says that the bridged USDC standard is permissionless, equitable, standardized, extensible, secure, and audited.

“Here’s how it works:

  1. Third-party team follows the standard to deploy their bridged USDC token contract.
  2. Bridged USDC is used to bootstrap initial liquidity in the ecosystem and begins to proliferate.
  3. Bridged USDC reaches a significant supply, amount of holders, and number of app integrations.
  4. Circle and third-party team jointly elect to securely transfer ownership of the bridged USDC token contract to Circle.
  5. Upon obtaining ownership, Circle upgrades bridged USDC to native USDC and seamlessly retains existing supply, holders, and app integrations.”

Circle also says that the new token standard for USDC will result in a less fragmented user experience, and can make the stablecoin compatible with multiple blockchains via the Cross-Chain Transfer Protocol (CCTP).

The announcement says the Bridged USDC Standard is already live on Linea and Scroll testnets and mainnets. Circle will expand the standard to support modular EVM architectures and simplify the deployment of new blockchains with a pre-set bridged USDC token contract compatible by default.

The firm aims for the Bridged USDC Standard to be a big step forward in USDC’s evolution and will boost its adoption in the blockchain ecosystem.

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