Circle has made a significant move with its native USDC issuance now available on the Sonic blockchain. This transition marks a key advancement in expanding decentralized finance (DeFi) capabilities. Users can expect seamless experiences post-transition, and increased regulatory compliance is expected, potentially leading to greater institutional adoption as native USDC enables cross-chain functionality. The transition from bridged USDC to native USDC on the Sonic blockchain, achieved without user or developer action, has been completed by May 13, 2025. This marks a pivotal step in expanding DeFi capabilities and unlocking new opportunities for financial innovation.
The collaboration between Circle, issuer of USDC, and Sonic Labs, the developer of the Sonic blockchain, has resulted in native USDC being fully operational on the platform. This enables direct minting and redemption, crucial for liquidity.
The transition offers several benefits to stakeholders, including:
* **Preserving existing smart contract addresses and total value locked on Sonic.**
* **Increased DeFi liquidity thanks to direct minting and redemption.**
* **Enhanced regulatory compliance and fiat convertibility in the crypto sector.**
Circle’s proactive strategy aligns with its previous success on other chains, suggesting increased liquidity and partnerships. The transition also signals a significant financial opportunity for USDC holders who are now able to access native USDC on the Sonic blockchain. The announcement of $500 million in bridged USDC transitioning and a $10M investment from Galaxy in Sonic’s native token signifies robust institutional interest and backing.
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