Circle integrates USDC with zkSync to boost liquidity usability and streamline cryptocurrency transactions across networks.
With the integration, zkSync—a layer 2 scaling solution for Ethereum (ETH) that uses zero-knowledge proofs to boost efficiency and cut costs—has taken a step closer to improving liquidity and usefulness. According to a blog post from Circle:
“The forthcoming native USDC on zkSync is set to usher in a new era of seamless transactions and integration capabilities for developers and institutional users alike. USDC, issued by Circle, will be native to zkSync and is the official form of USDC for the zkSync ecosystem.”
Circle will issue USDC, which will be integrated into zkSync and serve as the official currency for the zkSync ecosystem. It is expected that the present liquidity from the bridged USDC, which originated from Ethereum and moved to zkSync via the zkSync Era Bridge, will eventually shift to the new native format once native support is implemented.
One of native USDC’s many advantages on zkSync is that it is a fully restricted, controlled stablecoin that is always redeemable for US dollars 1:1. Furthermore, it would provide simple integration with current decentralized applications (dApps) and enable institutional on- and off-ramps such as Circle Mint for qualified customers.
The blog explains that “ahead of the launch of native USDC, the Ethereum-bridged form of USDC on block explorers like zkSync Era Block Explorer will be renamed USDC.e” to distinguish between the upcoming native USDC and its predecessor. In order to integrate USDC and its cross-chain transfer protocol into its blockchain ecosystem, Circle recently teamed up with Solana.
