Circle will launch the ‘bridge USDC standard’ to deploy to new networks

According to a blog post on November 21st, Circle has launched a new standard to streamline the process of rolling out stable USDC on new networks.

The new “bridge USDC standard” allows developers to launch the token in a two-step process. In the first stage, a third-party developer controls the token terms, and the token on the new network is supported by the native version on another network. In the second round, Circle controls deals, and the brand is directly backed by Circle stocks. The second step may not be available in all deployments.

Introducing the Bridged USDC Standard, a new way to expand access to $USDC and reduce fragmentation.

EVM blockchain and bundle teams can now seamlessly deploy a bridge USDC token contract with the option to upgrade to native shipping in the future.https://t.co/suSgllMQoQ

— Circle (@circle) November 21, 2023

According to the article, the token produced in the first phase will be “unofficial and non-circular or redeemable,” but will “serve as a proxy for USDC that can be used in any ecosystem where a bridge is possible.” If Circle and a third-party developer later decide to make the token public, they can “smoothly upgrade to a native version in the future.”

Cirque said it is releasing the requirement to avoid “migration”, users must switch from the unofficial version of USDC to the official version once it becomes available. If developers use the new standard, migration should be unnecessary, as it allows unofficial tokens already held in user wallets to be publicized.

Standard Github documentation requires developers to use a bridge with upgrade functionality for certain tasks and to avoid upgrading the bridge after the token is released.

Related: Stablecoin Issuing Circle Considering 2024 Public Launch: Report

Once the developer and the club decide to convert the token to the official version, a third-party developer can tie a new mit to the bridge and “reconcile in-flight bridge activity to the entire supply of native USDC.” Ownership of the contract can be transferred to Circle, at which point the native coins supporting the tokens on the new network will be burned, which will cause the new network's tokens to be directly backed by Circle's reserves.

In September, Circle USDC launched a native base network version. He did the same for Polygon in October.