Arbitrum Partners With Circle To Integrate USDC As Custom Gas Token For Orbit Chains
In Brief
Arbitrum partnered with Circle to integrate its USDC stablecoin as a custom gas token on Arbitrum Orbit blockchains.
Ethereum Layer 2 scaling solution Arbitrum announced a partnership with financial services company Circle to integrate Circle’s bridged USDC, as a custom gas token on Arbitrum Orbit blockchains. This collaboration enhances transaction processes within the Arbitrum ecosystem, offering users greater convenience, price stability, and accessibility.
This development will also allow users to pay transaction fees using bridged USDC as a custom gas token, removing the necessity to hold various types of tokens just for covering gas fees, aiming to simplify the transaction process and enhance user-friendliness.
Furthermore, as a digital US Dollar, USDC will offer price stability, pegged one to one to the US Dollar, which is essential for both users and developers. This stability ensures a predictable and reliable medium for covering gas fees. With over $1.6 billion in USDC already on Arbitrum, adopting USDC as a gas token reduces entry barriers for new users and projects on Arbitrum Orbit blockchains. This integration will simplify user interactions with the Arbitrum ecosystem by eliminating the need to convert assets.
For developers, this integration will provide an additional option for customizing Orbit blockchains and open up opportunities to apply for development grants from Circle. It also will allow for quick setup with Arbitrum Orbit Rollup-as-a-Service (RaaS) providers such as AltLayer, Caldera, and Conduit, with additional support from Ankr and Alchemy expected in the near future.
How This Layer 2 Transforms Ethereum
Arbitrum is a Layer 2 scaling solution for Ethereum aimed at improving scalability and efficiency. It employs rollup technology to boost transaction throughput and lower costs while preserving Ethereum’s security. Arbitrum comprises a suite of Layer 2 scaling solutions for Ethereum, including two active blockchains: Arbitrum One and Arbitrum Nova.
Meanwhile, Arbitrum Orbit provides developers with the tools to create and deploy customizable dedicated blockchains using Arbitrum technology. By utilizing it, users can create Arbitrum Rollup or AnyTrust blockchains. Orbit Chains can function as either Layer 2 blockchains that settle directly with Ethereum or Layer 3 blockchains that settle with any Ethereum Layer 2 solution, such as Arbitrum One. Importantly, users retain ownership of their Orbit Chains, allowing the
decentralization of ownership, validation, and other aspects.
Recently, Arbitrum Orbit has become a platform for both testnet and mainnet deployments for the on-chain infrastructure providers Ankr and Asphere, as well as the Decentralized Physical Infrastructure Network (DePIN) protocol Destra Network. The partnership between these initiatives aims to develop a DePIN environment for Web3 projects on this network.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
