Circle Introduces USDC on Base Platform, Phasing Out USD Base Coin (USDbC)

By Tsunami 08/30/23 8:18 AM

Circle, the company behind the USD Coin (USDC), has announced the upcoming launch of USDC directly on the Base network. This announcement also marks the end of the role of the USD Base Coin (USDbC) within the coming week. Jeremy Allaire, the CEO of Circle, took to the social media platform X on August 29th to share this pivotal development.

The USD Coin (USDC), which is a stablecoin pegged to the US Dollar, will now be available directly on the Base network, a platform introduced by Coinbase on August 9th. This transition from USDbC to USDC on Base is poised to streamline and simplify transactions for users who were previously utilizing USDbC.

Upon the launch of the Base network, USDbC was not in existence, leading to a predicament where users could not deposit cash into Circle accounts and receive an equivalent amount of USDC on Base.

Native $USDC on @BuildOnBase. Coming next week. #StableSeptember. Let’s go! https://t.co/oqfI0ZZhCn

— Jeremy Allaire (@jerallaire) August 29, 2023

To address this issue, the Base team allowed users to connect their USDC holdings from the Ethereum network using an official bridge application. This bridge-issued token, aptly named “USDbC,” is backed by the original USDC locked on the Ethereum network.

Allaire’s announcement has set the stage for Circle to begin the phased rollout of USDC on the Base network, eventually eliminating the need for a bridge coin supported by the Ethereum version.

An accompanying blog post further elaborates on the new token contract deployed on Base. On the launch day, the team will provide instructions on how to convert existing USDbC holdings into the native USDC.

The team is also actively collaborating with various applications in the ecosystem to facilitate a seamless transition for liquidity providers from supporting the current bridge coin to supplying liquidity for the new token. Concurrently, the current base asset supporting USDbC will continue to function as usual during this transition period.

According to recent findings, the Base network managed to attract over 136,000 users within just one day of its launch on August 10th. As of August 25th, Base has hinted at sharing its revenue details and managing an upcoming “Superchain,” which will encompass Base, Optimism, and other affiliated networks.

The introduction of USDC on the Base network not only signifies a significant step forward for Circle but also streamlines the process for users who were previously navigating the complexities of using the bridge coin. With the promise of a more efficient and straightforward process, this move is likely to garner increased adoption and interest within the cryptocurrency community.

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