Circle, the issuer of the stablecoin USD Coin (USDC), has expanded its support to the Ethereum zero-knowledge layer-2 solution, zkSync. This move aims to enable various ecosystem applications and DeFi protocols to utilize native USDC on zkSync for payments, trading, borrowing, and lending.
USDC Expands to zkSync
Circle’s recent announcement on April 9 highlights the integration of USDC onto zkSync, providing developers with a stable foundation officially supported by Circle. With this addition, USDC is now compatible with 16 blockchains, including Ethereum, Solana, Base, Arbitrum, and others.
Utilizing zero-knowledge proofs and rollups, zkSync ensures transaction integrity without revealing supporting evidence and bundles transactions off the Ethereum main layer, processing them at high speed and low cost on layer 2. The finalized proof is then sent back to the Ethereum mainnet. As of April 9, 2024, the zkSync ecosystem boasts over 180 decentralized applications and over 5.7 million unique active wallet addresses over the last 30 days.
Similar to USDC on other blockchains, zkSync USDC can be redeemed one-for-one for U.S. dollars directly via Circle or through digital wallets and exchanges. Additionally, zkSync USDC can be exchanged for other USDCs via cross-chain bridges, while institutional investors can access the stablecoin via Circle Mint.
Circle’s Strategy
Circle has been consistently expanding access to USDC across various blockchains, although it has occasionally halted such efforts. Notably, on Feb. 21, Circle ceased USDC minting on the Tron blockchain without providing a specific reason, citing continuous assessment of blockchain suitability for risk management.
Last year, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Justin Sun and the Tron Foundation, accusing them of offering unregistered securities and conducting manipulative trading. Justin Sun denied these allegations.
