The new version of USDC on Arbitrum will hold the original name, while USDC on the Ethereum platform will be renamed to "USDC.e."
Stablecoin issuer Circle is gearing up to introduce an upgraded version of its USD Coin (USDC) on the Arbitrum network.
Set to launch on June 8th, the move, aims to revamp and speed up cross-chain transactions, particularly leveraging Cross-Chain Transfer Protocols (CCTPs).
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Hot VS Cold Wallet: Which One Do YOU Need? (Animated)
These protocols are designed to manage asset transfers between distinct blockchains, bringing about unified liquidity covering a broad range of assets, from cryptocurrencies to Web3 offerings. The Arbitrum team shed light on this, stating:
This will enable USDC to move natively to-and-from Ethereum (and other supported chains) in minutes, no more withdrawal delays.
In an announcement, Circle revealed plans to replace the current Ethereum-based USDC that has been operating on Arbitrum through a bridge with a native version residing directly on the Arbitrum network. The organization stated:
This will be the official version of USDC that is recognized within the Arbitrum ecosystem and will ultimately replace the currently circulating bridged version of USDC that comes from Ethereum.
To accommodate this transition, the existing USDC on the Ethereum platform will be renamed "USDC.e," while the new native version on Arbitrum will bear the original "USDC" name. The original Ethereum-based coin will be known as "bridged USDC."
However, the move comes amidst a relatively challenging period for the stablecoin market, with several companies witnessing a negative trend over the past year.
Circle was not exempt from this trend, as its market share decreased significantly. Over the past year, USDC's market capitalization dwindled from $55 billion to $29 billion.
As Circle prepares to launch its native USDC on Arbitrum, the crypto community is keen to see if this move can help reverse the trend for USDC and bring about a resurgence in its market position.