Circle’s blog post stated, “USDC issued by Circle will be native to Base and can be considered the official form of USDC for the ecosystem. Over time, we expect native USDC liquidity will grow and may replace the currently circulating bridged USDbC liquidity that comes from Ethereum.”
Stablecoin issuer Circle announced its plans to launch USD Coin (USDC) on Base, Coinbase’s layer-2 network.
When Coinbase deployed Base for general users at the beginning of August, clients were unable to deposit their USD Coin assets to their Base account as the new platform lacked native support for USDC.
As a result, developers added a temporary fix by allowing users to use the official Base Bridge to move their USDC holdings between compatible Ethereum (ETH) wallets and Base. USDC tokens issued via Base Bridge became USD Base Coin (USDbC), and the Base community created bridged versions of other stablecoins, including Dai (DAI), Tether (USDT), and Curve DAO Token USD (crvUSD), to make the tokens compatible with Base.
In his latest tweet, Circle CEO Jeremy Allaire claimed Base will add native support for USDC “next week.” Besides enabling institutional on and off-ramp solutions, the launch of USDC on Base will make the stablecoin redeemable at a 1:1 swap rate with the US Dollar (USD) for Base users.
According to Circle, Base will provide more details on the USDbC-to-USDC swapping process on the launch day of native USDC. Base Bridge, however, will not undergo any images and will continue to remain operational.
Besides Base, Circle seeks to expand to five other blockchains in the coming weeks. As reported by The Block, the stablecoin issuer will launch USDC on Polygon POS (MATIC), Polkadot (DOT), NEAR Protocol (NEAR), and Cosmos Hub (ATOM) via the Noble network.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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