Circle Introduces New Standard for Bridged USDC, Aiming to Enhance Stability in the Crypto Ecosystem

A ground-breaking development in the cryptocurrency field has been revealed by Circle, the company behind the second-largest dollar-pegged cryptocurrency by market value. A new standard called the Bridged USDC Standard is being introduced by the firm with the aim of making it easier to implement a bridged version of USDC on Ethereum Virtual Machine (EVM) blockchains.

Enhancing Stability with Bridged USDC Standard

The Bridged USDC Standard, according to Circle, will revolutionize the industry by bringing a framework that is egalitarian, standardized, safe, expandable, audited, and permissionless. In order to facilitate interoperability and a more uniform user experience, the goal is to expedite the process of installing a bridging form of USDC on EVM blockchains.

In order to implement their bridging USDC token contract, third-party teams must follow the standard. The initial liquidity of the ecosystem is then bootstrapped using this token, which gains traction through an increase in supply, holders, and app integrations. When it hits a big milestone, the third-party team works with Circle to jointly give Circle ownership of the bridging USDC token contract. After that, Circle effortlessly maintains the current supply, holders, and app connections while upgrading the bridging USDC to native USDC.

According to Circle, the implementation of the Bridged USDC Standard would improve interoperability with other blockchains via the Cross-Chain Transfer Protocol (CCTP) and lead to a less fragmented user experience. The standard is now operational on the testnets and mainnets of Linea and Scroll, and Circle intends to increase the scope of its support for modular EVM designs.

By providing a pre-set bridging USDC token contract that is compatible by default, the firm hopes to streamline the implementation of new blockchains and take a major step towards the advancement of USDC and its wider adoption in the blockchain ecosystem.