Stablecoin USDC to Expand Cross-Chain, Supporting 5 New Blockchains
Circle is set to transform USDC into a cross-chain stablecoin, addressing liquidity fragmentation across blockchain platforms.
Circle, the company behind the second-largest stablecoin USDC, has announced plans to extend its reach to five new blockchains. This expansion aims to bolster market share and increase liquidity for users.
The new platforms to support USDC are Arbitrum, NEAR, Optimism, Polkadot, and Flow, bringing the total number of supported blockchains to 14, surpassing the 13 supported by rival Tether (USDT) for the first time.
Additionally, Circle will implement the Cross-Chain Transfer Protocol to facilitate seamless movement of USDC between supported blockchains. This solution is designed to enhance liquidity across blockchain ecosystems and address the issue of fragmented liquidity in the crypto space.
USDC Blockchain Support Roadmap
Crypto projects and developers, including wallets, bridges, and payment applications, will benefit from USDC’s availability across multiple blockchains, streamlining user experiences and optimizing cash flow. The Cross-Chain Transfer Protocol will also integrate with various aspects such as trading, investing, and NFTs.
The new protocol will operate on a mint-burn mechanism between blockchains. When users transfer USDC, the protocol will burn the stablecoin on the source blockchain and reissue it on the target blockchain, ensuring no inflation of the stablecoin supply.
Initially, the Cross-Chain Transfer Protocol will support Ethereum and Avalanche, with plans to expand to other ecosystems in the near future.
This move by Circle represents the latest effort to restore and reinforce USDC’s position. Despite its high credibility, USDC has been impacted by the broader downturn in the crypto market in 2022 and the emergence of new stablecoins from projects like Aave, Curve, and Coin98.
Market Capitalization of USDC from Early 2022 to Present, Screenshot from CoinMarketCap on 29/09/2022
