Circle Introduces ‘Bridged USDC Standard’ to Easily Deploy to New Networks
The launch of a new standard by Circle aims to simplify the process of deploying its stablecoin, USDC, on new networks. According to a blog post on Nov. 21, the newly introduced “bridged USDC standard” is a two-phase process that provides a streamlined approach for developers to release the token on different networks.
Understanding the ‘Bridged USDC Standard’
The new standard allows third-party developers to have control over the token contracts during the initial phase. This means that the token on the new network is initially backed by a native version on a different network. However, in the second phase, Circle takes control of the contracts, and the token becomes backed directly by Circle’s reserves. It’s important to note that the second phase is not mandatory for all deployments. This approach simplifies the process for developers while ensuring the stability and security of the USDC.
Benefits of the New Standard
The introduction of the bridged USDC standard offers several advantages. Firstly, it eliminates the need for migrations, where users must swap an unofficial version of USDC for an official version after its release. Additionally, it allows the unofficial tokens held in a user’s wallet to transition seamlessly to being official, reducing complexity for both developers and users.
Circle has stressed the importance of using the new standard to avoid migrations. By choosing to adopt this standard, developers can significantly streamline the process and improve the overall user experience for holders of the USDC token.
Technical Requirements and GitHub Documentation
Developers interested in deploying USDC on new networks using the bridged standard need to refer to the technical requirements and documentation available on GitHub. This includes using a bridge with upgrade functionality for specific functions and refraining from upgrading the bridge once the token is issued. Following these guidelines is crucial for a smooth deployment process and to ensure the security and integrity of the token.
Transitioning to an Official Version
When the decision is made to transition the token to an official version, the third-party developer can freeze new mints on the bridge and reconcile in-flight bridging activity to harmonize the total supply of native USDC. Subsequently, ownership of the contract can be transferred to Circle, leading to the burning of the native coins backing the tokens on the new network and enabling the new network’s tokens to be backed directly by Circle’s reserves. This transition process is important for maintaining the stability and value of the USDC on the new network.
Circle’s Recent Moves in the Cryptocurrency Space
The launch of the bridged USDC standard follows Circle’s recent milestones in the cryptocurrency space. In September, Circle introduced a native Base network version of USDC, and in October, it did the same for Polygon. These strategic moves demonstrate Circle’s commitment to expanding the availability and utility of the USDC on different networks, catering to the diverse needs of the cryptocurrency community.
Crypto enthusiasts and developers now have a simplified and more efficient approach to deploying USDC on new networks, thanks to Circle’s innovative bridged USDC standard
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