Circle, the company behind the stablecoin USD Coin (USDC), has broadened its integration to include the Ethereum zero-knowledge layer-2 solution, zkSync.
In an announcement today (April 9), Circle highlighted that a significant number of leading applications within the ecosystem and DeFi protocols are anticipated to adopt USDC on zkSync for various financial activities such as payments, trading, borrowing, and lending.
Furthermore, Circle’s support enables developers to utilize USDC on zkSync as a robust and enduring foundation for their projects. This expansion sees USDC now operational across 16 different blockchain platforms, among them Ethereum, Solana, Base, and Arbitrum.
1/ @Circle is launching native $USDC on @zksync.
Here’s everything you need to know 🧵
‣ USDC vs USDC.e
‣ Migrating USDC.e to USDC
‣ Official zkSync Era contract addresses https://t.co/YekaNrccZg pic.twitter.com/8MwmDCmERm— zkSync (∎, ∆) (@zksync) April 9, 2024
zkSync USDC Can Be Redeemed For U.S. Dollars Directly Via Circle
Zero-knowledge proofs verify the validity of a transaction without revealing the underlying data, while rollups consolidate multiple transactions off the main Ethereum network into one.
These technologies are essential to the functionality of zkSync, a layer 2 solution that achieves high transaction speeds and low costs, subsequently returning the conclusive proof to Ethereum’s mainnet. As of April 9, 2024, the zkSync network supports more than 180 decentralized applications and boasts over 5.7 million unique active wallets in the past month.
zkSync’s version of USDC, similar to its counterparts on other blockchains, guarantees a one-to-one exchange rate with the U.S. dollar, with redemption options available through Circle, various digital wallets, and exchanges. Additionally, users can convert zkSync USDC to other versions of the currency using cross-chain bridges, and institutional investors have the option to utilize Circle Mint for stablecoin access.
Circle emphasizes that zkSync’s attractions include swift and economical transactions alongside simplified account management, with the overarching goal of enhancing Ethereum’s capacity while maintaining its core principles.
Circle And Its Unexplained Pauses On The USDC
Although Circle has predominantly focused on broadening the reach of USDC across different blockchains, there have been intermittent pauses in these efforts.
Notably, on February 21, Circle abruptly stopped the issuance of USDC on the Tron network without providing specific reasons, other than stating its ongoing evaluation of blockchain platforms to align with its risk management strategy.
This decision came in the wake of the U.S. Securities and Exchange Commission’s legal action against Justin Sun and the Tron Foundation, accusing them of offering unregistered securities and engaging in deceptive trading practices, allegations that Sun disputes.