For context, USD Coin (USDC) is a stablecoin designed to maintain a stable value relative to another asset or basket of assets. In this case, it’s pegged to the US dollar.
USDC was created by Centre, a consortium of companies that includes Coinbase and Circle. The group developed a set of standards for stablecoins to ensure they’re transparent, auditable, and compliant with US law.
Arbitrum is a Layer 2 scaling solution designed specifically for Ethereum. It leverages optimistic rollups to provide both scalability and security.
Optimistic rollups are a type of Layer 2 scaling solution that batch transactions off-chain before submitting them to the Ethereum mainnet for finalization.
What sets Arbitrum apart from other Layer 2 scaling solutions is its high scalability, low fees, and enhanced security features.
Moreover, USDC is readily available on Arbitrum. This means that developers and users can use the cryptocurrency directly on Arbitrum without requiring any bridge.
“Circle Account and Circle APIs enable businesses to access Arbitrum USDC and take advantage of faster settlement times and lower costs offered by the Arbitrum network.”
From USDC.e to USDC
Until now, in order for users to access USDC on Arbitrum, they were given USDC.e, which is a bridged form of USDC on the Ethereum blockchain that is not issued by Circle.
According to Circle, the layer two blockchain “will be working with ecosystem apps to provide a smooth transition of liquidity from bridged USDC to native USDC over time.”
Furthermore, anyone, from single users to institutions, who need to access USDC on Arbitrum, is only required to have a Circle account that grants access to the Circle APIs. It is now possible to swap USDC natively across Ethereum, Solana, Arbitrum, Algorand, Tron, Polygon, Avalanche, Flow, Hedera, and Stellar blockchains.