USDC Stablecoin Launches Natively on Arbitrum (ARB)

The native Arbitrum-based version of USD Coin by Circle is set to replace the existing token that bridges $USDC liquidity from Ethereum ($ETH). The token will play an important role in the upcoming cross-chain developments scheduled by Circle.

$USDC launches natively on Arbitrum, liquidity migration starts

According to the joint official announcement shared by fintech heavyweight Circle and the team of L2 scaling network Arbitrum, $USDC, the second largest stablecoin, is set to launch its native version on Arbitrum ($ARB) on June 8, 2023. The existing Ethereum-based token will be labeled as "$USDC.e" in explorers.

1/ Hey Arbinauts!💙🧡@Circle is launching $USDC natively on @Arbitrum on June 8th!

To learn more about this launch and how to migrate liquidity from “bridged $USDC” to native $USDC, please check out our blogpost 👉https://t.co/N89GIo6wPE

🧵👇 pic.twitter.com/o9gnU5w3bH

— Arbitrum (💙,🧡) (@arbitrum) June 1, 2023

Just like other versions of $USDC launched "natively" across various EVM-compatible blockchains, the Arbitrum-based token will be fully reserved and redeemable 1:1 for U.S. Dollars from Circle treasury. Institutions will be able to use them as a native on- and off-ramp to the blockchain.

The Arbitrum-based smart contract for the new token (0xaf88d065e77c8cC2239327C5EDb3A432268e5831) will be open for further enhancements by Circle, $USDC issuer.

The value migration from the previous version of $USDC stablecoin will be organized by Arbitrum, together with the decentralized applications of its ecosystem:

Arbitrum will be working with ecosystem apps to provide a smooth transition of liquidity from bridged $USDC to native $USDC over time. There will be no immediate changes to the Arbitrum Bridge, and it will continue to operate normally for bridging $USDC to and from Ethereum.

Some necessary adjustments will be made in the UX/UI of Arbitrum-based dApps and their documentation.

Arbitrum ($ARB) strengthens its dominance in L2 segment

The launch of native $USDC on Arbitrum is aligned with the cross-chain ambitions of Circle's stablecoin. Arbitrum-based token will be included in Cross-Chain Transfer Protocol (CCTP). The mechanism is designed to allow Circle customers to move value between various blockchains in minutes.

As covered by U.Today previously, $USDC is the second largest stablecoin with a market capitalization of over $28 billion.

Arbitrum ($ARB) is the largest second layer scaling solution on Ethereum ($ETH). The network is responsible for $5.7 billion in TVL, or about 65% of the entire L2 ecosystem on Ethereum ($ETH).