Circle has launched a brand new customary to streamline the method of launching its stablecoin, USDC, on new networks, in keeping with a Nov. 21 weblog put up.
The brand new “bridged USDC customary” permits builders to launch the token by a two-phase course of. Within the first section, the third-party developer has management of the token contracts, and the token on the brand new community is backed by a local model on one other community. Within the second section, Circle takes management of the contracts, and the token turns into backed instantly by Circle’s reserves. The second section could not happen with all deployments.
Introducing Bridged USDC Customary, a brand new method to broaden entry to $USDC & scale back fragmentation.
EVM blockchain & rollup groups can now deploy a bridged USDC token contract with optionality for Circle to seamlessly improve to native issuance sooner or later.https://t.co/suSgllMQoQ
— Circle (@circle) November 21, 2023
In response to the put up, the token produced within the first section can be “unofficial and never issued nor redeemable by Circle,” however will serve “as a proxy to USDC that’s extensible to any ecosystem the place bridging is made potential.” If Circle and the third-party developer later determine they need to make the token official, they will “seamlessly improve to native issuance sooner or later.”
Circle stated it is releasing the usual to remove the necessity for “migrations,” the place customers should swap an unofficial model of USDC for an official model after it turns into obtainable. If builders use the brand new customary, migrations ought to turn out to be pointless, because it permits the unofficial tokens already held in a consumer’s pockets to turn out to be official.
The usual’s Github documentation requires builders to make use of a bridge with improve performance for particular capabilities and chorus from upgrading the bridge as soon as the token is issued.
Associated: Stablecoin issuer Circle weighing up 2024 public launch: Report
As soon as the developer and Circle determine to transition the token to an official model, the third-party developer can freeze new mints on the bridge and “reconcile in-flight bridging exercise to harmonize the overall provide of native USDC.” Possession of the contract can then be transferred to Circle, at which level the native cash backing the tokens on the brand new community can be burnt, inflicting the brand new community’s tokens to be backed instantly by Circle’s reserves.
In September, Circle launched a local Base community model of USDC. In October, it did the identical for Polygon.
