Circle CEO Jeremy Allaire has announced that its USDC stablecoin will launch natively on the Base Network next week.
A New Home For USDC
Circle CEO Jeremy Allaire has revealed that the USDC stablecoin will soon find its native home on the Base Network, with the launch scheduled for next week. Allaire's announcement via X (formerly known as Twitter) has set the stage for a significant shift in the crypto landscape, stirring up discussions about the implications of this strategic move.
The Circle team also confirmed the news via a blog post and revealed that the USDC issued by Circle will be considered the official version of the stablecoin on the Base platform. Although the exact launch date has not yet been announced, the contract for the new token has already been deployed to Base.
Making Do With USDbC
The Base Network did not have a native version of the USD Coin when it was launched on August 9 by Coinbase. This prevented users from depositing cash into a Circle account and receiving equivalent USDC on Base.
The USDbC token was introduced as a temporary solution to address this concern, where users could bridge USD Coins from Ethereum via an official bridge app. Thanks to the launch of the native USDC on the Base platform, users will no longer have to resort to bridging their tokens from Ethereum.
Streamlining Liquidity
Users and developers on the Base Network will highly benefit from this development, especially due to the expanded liquidity. A key aspect of this integration is the potential to phase out bridged USDbC liquidity, which currently flows from Ethereum.
As the native USDC becomes more popular in the ecosystem, the network will be able to function more autonomously, where transactions and value transfers occur natively, eliminating the reliance on external bridges. This transition will introduce enhanced scalability, security, efficiency, and an overall streamlined process.
The network will collaborate with ecosystem apps to ensure the transition from bridged to native USDC liquidity goes through without a hitch.
Empowering Developers and Institutional Investors
Beyond its impact on liquidity, the integration of native USDC will allow developers to harness stablecoin functionality for their decentralized apps (dApps). Additionally, institutional investors will also be able to facilitate the smooth fusion of fiat currency with crypto.
Incidentally, concerns of disruption can be put to bed as the Coinbase team has revealed that the Base Bridge will remain unaffected by the integration and will continue functioning as normal.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
