KEY POINTS
- The integration is expected to enhance Sui's utility, security, and interoperability
- The announcement also marks a milestone in the Sui blockchain's maturation
- Sui builders will soon be able to use native USDC across various use cases
Layer 1 blockchain Sui today announced the upcoming native launches of Circle's stablecoin USDC and the Cross-Chain Transfer Protocol (CCTP) on the Sui Network, allowing for more liquidity to the network among other benefits.
The integration of native USDC and CCTP is expected to enhance Sui's utility, security, and interoperability for both users and developers. In turn, the enhanced utility on the Sui network should usher in more liquidity as transactions are streamlined and market efficiency across the platform is improved.
What is $USDC?
USDC, which was first launched by a joint venture between Circle and Coinbase in 2018, has become the largest regulated stablecoin on the planet. As of Tuesday, it has reached a staggering $35 billion market cap. It is being managed by Circle and is pegged to the U.S. dollar.
Excited to partner with our friends at @circle. USDC is coming to @SuiNetwork ! pic.twitter.com/0aUDrUxoNV
— evan.sui (@EvanWeb3) September 17, 2024
What is CCTP?
CCTP is a permissionless on-chain utility that attests to USDC transfers securely between blockchains. It unifies liquidity and simplifies the user experience via native burning and minting.
Transactions in the multi-chain world have been plagued with issues on poor user experiences due to liquidity fragmentation among others. CCTP solves such issues as it allows apps built on the protocol to "teleport" USDC from one blockchain to another in a highly secure and capital-efficient manner.
Sui Integration Opens Future of Opportunities for Builders
Integrating the native USDC and CCTP will not only improve market efficiency across the booming Sui ecosystem but is also expected to pave the way for more opportunities for developers.
Sui builders will soon be able to use native USDC in a multitude of digital dollar-backed financial products across a variety of use cases including decentralized finance (DeFi), gaming, DePIN, and e-commerce. Such flexibility will allow users to seamlessly send, spend and save with digital dollars.
"Circle is excited to support Sui's community of developers and end users with the upcoming availability of native USDC and CCPT. Circle's open platform and permissionless protocols will help more builders deliver blockchain based utility and contribute to efficient payment experiences on Sui and across other ecosystems," Circle Chief Product Officer Nikhil Chandhok said in a press release shared with International Business Times.
"The availability of USDC as a native asset on Sui marks yet another major milestone in the maturation of the Sui ecosystem. In combination with USDC's first-class technology, native USDC gives the Sui community seamless access to one of the world's most trusted digital currencies and cements Sui as an industry leader," said Adeniyi Abiodun, co-founder and Chief Product Officer of Mysten Labs, which developed the Sui Network.
The network noted that it will collaborate with ecosystem apps to transition liquidity from bridged USDC to native USDC gradually, while Wormhole's Portal bridge will continue operating as usual.
The Ethereum-bridged USDC will be renamed "wUSDC" on block explorers before native USDC launches, and ecosystem apps will be encouraged to update their UI and documentation accordingly.
Sui's Evolution as an Industry Leader
The integration of one of the cryptocurrency industry's bedrock assets just a little over a year since its mainnet launch underscores the Sui network's rapid evolution toward becoming an industry leader.
Sui has a thriving DeFi environment that boasts over $700 million in Total Value Locked (TVL), over $215 million in bridged USDC, and a top 10 ranking in weekly DEX trading volume. The network's achievements provide a key foundation for USDC's continuous scalability.
