Circle Extends USD Coin Support to Ethereum's zkSync Layer-2 Solution
Summary:
Circle, the issuer of stablecoin USD Coin (USDC), has extended its support with Ethereum's zkSync Layer-2 solution. This enables major DeFi protocols and applications to utilize USDC on zkSync for various services. Now, USDC is supported on 16 blockchains, including Ethereum, Solana, and others. Offering speedy, low-cost transactions, zkSync is contributing to increasing Ethereum’s throughput. As of the announcement, the zkSync ecosystem has over 180 decentralized applications and 5.7 million distinct active wallets. However, Circle has also halted minting USDC on the Tron blockchain without clear reasons.
Circle, the issuer of the stablecoin USD Coin (USDC), has broadened its horizons by integrating its coin into Ethereum's zkSync layer-2 solution. The move, announced on April 9, enables several top-ranking ecosystem apps and DeFi protocols to utilize USDC on zkSync seamlessly. With this integration, developers can leverage the stability and official recognition of USDC on zkSync to craft enduring digital products. Pushing its boundaries even further, Circle now offers support for USDC on 16 blockchains - not just Ethereum, but also Solana, Base, Arbitrum, among others.
Operating without revealing supporting data, zero-knowledge proofs verify transaction accuracy. Concurrently, rollups collate transactions outside Ethereum's core and streamline them into a consolidated transaction. This dual functionality forms the heart of zkSync technology, processing transactions in a fast, economically efficient fashion at layer 2 and returning the validated proofs to the Ethereum network's core layer. As of the announcement, the robust zkSync ecosystem comprised more than 180 decentralized applications and boasted over 5.7 million distinct active wallets over the past month.
Similar to its operations on different blockchains, the zkSync USDC can be traded one-to-one for U.S. dollars directly through Circle, digital wallets, or exchanges. It also permits exchanges between different chains’ USDCs via cross-chain connectors. Circle Mint offers institutional investors the opportunity to avail the stablecoin. According to Circle, zkSync offers businesses and developers the chance to take advantage of swift, low-cost transactions and inherent account abstraction. It further explained that zkSync is driven by the goal to boost Ethereum's throughput while maintaining its essential values.
While Circle is primarily focused on expanding USDC accessibility across multiple blockchains, it has intermittently paused its endeavors. Most notably, on February 21, Circle abruptly halted minting USDC on the Tron network, without citing definite reasons. Placing continuous evaluation of all blockchains' suitability at its core risk management strategy, Circle maintained ambiguity about its sudden decision. Last year, Justin Sun and the Tron Foundation were embroiled in lawsuits filed by the U.S. Securities and Exchange Commission for allegedly trading unregistered securities and manipulation, both of which Sun refutes. Binance, in a move echoing Circle's decision, has also withdrawn its support for USDC on the Tron network.
Published At
4/9/2024 8:43:13 PM
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