Invest in Web 3.0 with Circle’s ‘Bridged USDC Standard’

Circle Streamlines USDC Stablecoin Launch Process

Circle has unveiled a new standard to simplify the process of introducing its USDC stablecoin to new networks, as per a blog post on Nov. 21.

The “bridged USDC standard” is a two-step process. Initially, the third-party developer has control of the token contracts, and the token on the new network is backed by a native version on another network. In the second stage, Circle takes over the contracts, and the token is then backed directly by Circle’s reserves. This second step may not be required for all deployments.

The token created in the first stage is “unofficial and not issued nor redeemable by Circle,” but serves as a “proxy to USDC that’s extensible to any ecosystem where bridging is made possible.” If Circle and the third-party developer decide to make the token official, they can “seamlessly upgrade to native issuance in the future.”

Circle has released the standard to eliminate the need for “migrations,” in which users have to exchange unofficial versions of USDC for official ones when they become available. If developers use the new standard, migrations will no longer be required, as it allows users to easily upgrade the unofficial tokens in their wallets to official ones.

Transitioning to a Native USDC Network

The Github documentation for the Dynamic Web Module 3.0 requires developers to use a bridge with upgrade functionality and not upgrade it once the token is issued. Upon transitioning the token to an official version, the third-party developer can freeze new mints on the bridge and “reconcile in-flight bridging activity to harmonize the total supply of native USDC”. Ownership of the contract can then be transferred to Circle, resulting in the burning of the native coins backing the tokens on the new network, and the new network’s tokens being backed directly by Circle’s reserves.

In September, Circle launched a native Base network version of USDC and followed suit in October with the same for Polygon. Crypto.com also has its own token, and investors can explore options to invest in Web 3.0. Additionally, users can make their own Web 3.0 websites, and use a crypto wallet or Keep Network Crypto for secure transactions.