Circle, the issuer of the second-largest stablecoin USDC, has announced that it will natively deploy USDC on Arbitrum, the largest Ethereum Layer-2 scaling project.
The move is a major step for USDC, as it will make the stablecoin more accessible to users who are looking to avoid the high gas fees associated with Ethereum.
Arbitrum is a popular Layer-2 scaling solution that uses optimistic rollups to achieve scalability. Optimistic rollups allow for faster and cheaper transactions on Ethereum by batching transactions off-chain and then submitting them to the Ethereum mainnet for verification.
The deployment of USDC on Arbitrum will make the stablecoin more accessible to users who are looking to avoid the high gas fees associated with Ethereum.
This could lead to increased adoption of USDC, as it becomes a more viable option for payments and other applications.
Circle said in a blog post that natively deploying USDC on Arbitrum offers a variety of benefits, including:
- Faster and cheaper transactions: Transactions on Arbitrum are significantly faster and cheaper than transactions on Ethereum. This makes USDC more accessible to users who are looking to avoid the high gas fees associated with Ethereum.
- Improved scalability: Arbitrum is a Layer-2 scaling solution, which means that it can be used to scale Ethereum without compromising the security or decentralization of the network. This makes USDC more scalable and able to handle increased demand.
- Enhanced security: Arbitrum is a secure Layer-2 scaling solution that uses optimistic rollups to achieve scalability. This means that transactions on Arbitrum are verified off-chain before being submitted to the Ethereum mainnet for final confirmation. This provides an additional layer of security for users.
The USDC deployment on Arbitrum will happen on June 8th. Before the deployment, Circle will rename the current bridged USDC to USDC.e.
