- Circle launched a new “bridged USDC standard” to simplify deploying USDC on new blockchains. It allows developers to launch a bridged version first, then later upgrade it to be directly backed by Circle.
- The bridged tokens act as a proxy for USDC initially. If Circle supports making them native later, they can upgrade without requiring token migrations.
- Circle created this standard to better support USDC across multiple chains. It lets developers easily launch USDC without Circle first, while avoiding friction from future token migrations.
Circle, the issuer of the stablecoin USDC, has announced a new standard to simplify the process of launching USDC on new blockchain networks. The “bridged USDC standard” allows developers to deploy USDC in two phases, eliminating the need for token “migrations” when new networks go live.
How the New Standard Works
Under the new standard, developers can launch a bridged version of USDC as the first phase. This token acts as a proxy for USDC while being backed on its native network. Later on, if Circle supports making the token native, the contracts can be upgraded to be directly backed by Circle’s reserves.
The bridged tokens are unofficial to start. But if the upgrade occurs, they can seamlessly become official without requiring users to swap their tokens.
Why Circle Created This Standard
Previously, unofficial USDC versions had to be swapped for official ones after launching. The new standard avoids this, allowing bridged tokens to upgrade to official status.
Circle said this standard will better support USDC’s multi-chain future. It allows developers to launch USDC easily without Circle’s involvement initially. And it eliminates the friction of token migrations down the line.