Benzinga - Financial technology firm Circle announced on Thursday that the launch of its USD Coin (CRYPTO: USDC) on the Arbitrum (CRYPTO: ARB) platform is June 8.
In this new arrangement, USDC issued by Circle will be recognized as the official version within the Arbitrum ecosystem.
This addition is expected to gradually replace the currently circulating Ethereum-bridged USDC, improving liquidity over time.
The launch also includes plans for future support from the Cross-Chain Transfer Protocol (CCTP), to eliminate delays associated with bridge withdrawals.
Circle stated that USDC will be reserved and redeemable 1:1 for U.S. dollars, thereby ensuring stability and reliability for traders.
It also offers institutional on-and-off ramps via Circle and its partners, enhancing the ease of use and accessibility for larger entities.
Prior to the launch, Circle plans to rename the Ethereum-bridged version of USDC on block explorers as USDC.e. Circle will reach out to ecosystem apps, encouraging them to mirror this change in their user interfaces and documentation.
Also Read: Red Bull Racing's Multimillion-Dollar Crypto Leap: Sui Blockchain Joins The Formula One Pit Crew
This change is expected to provide a clear distinction between the Ethereum-bridged and native versions of USDC.
The Arbitrum Foundation will work alongside ecosystem apps to ensure a smooth transition of liquidity from bridged USDC to native USDC over time.
It was assured users the Arbitrum Bridge will continue to operate normally for bridging USDC to and from Ethereum during this transition phase.
Circle also anticipates bringing the Cross-Chain Transfer Protocol (CCTP) to Arbitrum post-launch, enabling USDC to move natively between Ethereum (CRYPTO: ETH) and other supported chains within minutes, effectively eliminating withdrawal delays.
Read Next: No More Crypto Roller Coasters: Hong Kong's First Digital's Stablecoin Promises Smooth Ride
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.