Native USDC Arrives On Linea With Industry’s First Bridged-to-Native Upgrade
In Brief
Linea will be the first blockchain to have Circle’s Bridged USDC Standard upgraded to native USDC and gain support for CCTP V2 following its mainnet launch.
Global fintech company and stablecoin issuer Circle has announced the launch of native USDC on the zkEVM Layer 2 blockchain Linea.
Linea, a zkEVM Layer 2 blockchain developed by ConsenSys, is designed to scale Ethereum while maintaining its security and decentralization. Since its launch in July 2023, Linea has quickly gained traction, securing over $183 million in Total Value Locked (TVL) across more than 400 applications and processing 250 million transactions, making it the largest zkEVM blockchain by total value secured.
With this new launch, Linea will become the first blockchain to transition seamlessly from bridged USDC to native USDC without requiring any action from developers or users. Furthermore, Linea will be the first blockchain to support CCTP V2, following its upcoming mainnet launch on Avalanche, Base, and Ethereum. CCTP V2 introduces a burn-and-mint process, allowing for secure, capital-efficient USDC transfers across blockchains, with faster-than-finality settlement and improved smart contract composability for post-transfer operations, all without the need to lock liquidity.
Linea, as one of the early adopters of the Bridged USDC Standard, showcased the advantages of this approach by minimizing liquidity fragmentation. It did so by creating a single unified version of bridged USDC for the ecosystem to utilize. This standard played a key role in jumpstarting activity within the Linea ecosystem, with more than $19 million in bridged USDC, making up over 71% of its stablecoin circulation.
The transition to native USDC will provide significant benefits to Linea’s developers, applications, and users. This upgrade ensures a seamless experience by eliminating the need for ecosystem education or liquidity migration incentives. After the upgrade, bridged USDC (USDC.e) on Linea will automatically be converted to native USDC (USDC), with no requirement for code changes or asset swaps by applications or token holders.
Native USDC, along with CCTP V2, offers several important features, including regulatory compliance, being fully reserved, and redeemable on a 1:1 basis for US dollars. It also provides access to institutional on/off-ramps via Circle Mint for eligible businesses. The integration of native USDC into both new and existing apps will be straightforward, enabling fast, secure, and efficient cross-chain transactions.
How The Upgrade Will Be Implemented
The upgrade process, expected to take approximately 1-2 weeks. First, on March 16, Linea will pause the bridging activity for bridged USDC (USDC.e) on its main bridge between Ethereum and Linea, while ensuring any pending transactions are settled. Other bridging routes will not be affected by this pause.
Next, Linea will transfer the ownership of the bridged USDC contract to Circle, which will pave the way for the upgrade to native USDC. Following this, Circle will launch CCTP V2 on Linea, establishing connections to Avalanche, Base, and Ethereum for efficient and seamless cross-chain transfers of USDC.
Throughout this upgrade period, bridged USDC (USDC.e) on Linea will remain fully functional for trading, spending, and swapping. Users will be able to swap USDC.e for any supported asset and bridge to other blockchains via third-party bridging providers.
Disclaimer
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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.
