{"id":25390,"date":"2023-11-21T16:16:54","date_gmt":"2023-11-21T16:16:54","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/circle-launches-bridged-usdc-standard-for-deploying-to-new-networks\/"},"modified":"2023-11-21T16:16:56","modified_gmt":"2023-11-21T16:16:56","slug":"circle-launches-bridged-usdc-standard-for-deploying-to-new-networks","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/circle-launches-bridged-usdc-standard-for-deploying-to-new-networks\/","title":{"rendered":"Circle launches ‘bridged USDC standard’ for deploying to new networks"},"content":{"rendered":"

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Circle has launched a new standard to streamline the process of launching its stablecoin, USDC, on new networks, according to a Nov. 21 blog post.\u00a0<\/p>\n

The new \u201cbridged USDC standard\u201d allows developers to launch the token through a two-phase process. In the first phase, the third-party developer has control of the token contracts, and the token on the new network is backed by a native version on another network. In the second phase, Circle takes control of the contracts, and the token becomes backed directly by Circle\u2019s reserves. The second phase may not occur with all deployments.<\/p>\n

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Introducing Bridged USDC Standard, a new way to expand access to $USDC<\/a> & reduce fragmentation.<\/p>\n

EVM blockchain & rollup teams can now deploy a bridged USDC token contract with optionality for Circle to seamlessly upgrade to native issuance in the future.https:\/\/t.co\/suSgllMQoQ<\/p>\n

\u2014 Circle (@circle) November 21, 2023<\/a><\/p><\/blockquote>\n

According to the post, the token produced in the first phase will be \u201cunofficial and not issued nor redeemable by Circle,\u201d but will serve \u201cas a proxy to USDC that\u2019s extensible to any ecosystem where bridging is made possible.\u201d If Circle and the third-party developer later decide they want to make the token official, they can \u201cseamlessly upgrade to native issuance in the future.\u201d<\/p>\n

Circle said it’s releasing the standard to eliminate the need for \u201cmigrations,\u201d where users must swap an unofficial version of USDC for an official version after it becomes available. If developers use the new standard, migrations should become unnecessary, as it allows the unofficial tokens already held in a user\u2019s wallet to become official.<\/p>\n

The standard\u2019s Github documentation requires developers to use a bridge with upgrade functionality for specific functions and refrain from upgrading the bridge once the token is issued.<\/p>\n

Related: <\/strong>Stablecoin issuer Circle weighing up 2024 public launch: Report<\/strong><\/em><\/p>\n

Once the developer and Circle decide to transition the token to an official version, the third-party developer can freeze new mints on the bridge and \u201creconcile in-flight bridging activity to harmonize the total supply of native USDC.\u201d Ownership of the contract can then be transferred to Circle, at which point the native coins backing the tokens on the new network will be burnt, causing the new network\u2019s tokens to be backed directly by Circle\u2019s reserves.<\/p>\n

In September, Circle launched a native Base network version of USDC. In October, it did the same for Polygon.<\/p>\n<\/div>\n