Circle rolled out a fresh norm that enables creators to kick off an uncertified bridged variant of USDC. This can eventually turn into an official, recognized version.
Circle had launched an updated standard in a new bid to simplify bringing its stablecoin, USDC, and board new networks. A blog post shared this information on November 21st.
A fresh “USDC bridged standard” introduces a two-step plan for developers to release the token. An external developer initially manages the token contracts, while a version from a different network supports the new network’s token.
Then, Circle assumes command of the contracts, and Circle’s reserves start to directly back the token. However, not all rollouts will see this second phase.
Introducing Bridged USDC Standard, a new way to expand access to $USDC & reduce fragmentation.
EVM blockchain & rollup teams can now deploy a bridged USDC token contract with optionality for Circle to seamlessly upgrade to native issuance in the future.https://t.co/suSgllMQoQ
— Circle (@circle) November 21, 2023
The post indicates that Circle will not officially provide the first-phase token. Instead, it will be a stand-in for USDC in any system where connections can be established.
Circle and another developer could make the token official later. They could then “smoothly transition to direct issue in the future.”
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Circle announced they’re launching a standard to end the requirement of “migrations”. This means users won’t have to exchange an unofficial USDC form for an official one as it’s released.
When developers use this new standard, it eliminates the need for migrations. This is because unofficial tokens in a user’s wallet can directly morph into official ones.
According to the GitHub guidelines, developers should use an enhancing bridge for certain duties. The tokens issued should not update this bridge once it gets published.
When both the coder and Circle agree to switch the token to a finalized version, the independent programmer can cease fresh mints on the bridge and “balance in-progress bridging actions to regulate the sum of native USDC.”
The contract’s ownership can then shift to Circle, during which the authentic coins that backed the tokens on the fresh network will be destroyed.
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This leads to Circle’s reserves directly supporting the new network’s tokens. Circle released USDC’s native Base network in September. They did a similar thing for Polygon in October.