Circle, the issuer of the popular USD Coin (USDC) stablecoin, has announced plans to launch on the layer-1 blockchain Sui network.
USDC is a fully-backed stablecoin tied 1:1 to the United States dollar, offering users a stable store of value in the often volatile crypto market.
Circle CEO Jeremy Allaire noted that the upcoming launch of USDC on the Sui network can expand the support of stablecoin to more than 15 blockchain networks.
USDC to Launch on Sui via CCTP
With the forthcoming integration, USDC will gain support on the Sui network through the Cross-Chain Transfer Protocol (CCTP). This permissionless on-chain tool enables seamless transfers of USDC across different blockchains by utilizing a process of native burning and minting.
Integrating native USDC and CCTP on Sui will enhance the L1 network’s usability, security, and interoperability for both users and developers.
Notably, USDC’s deployment on Sui came only a day after the stablecoin issuer partnered with the electronics firm Sony to launch the dollar-pegged asset on the Ethereum layer-2 network, Soneium. Circle’s USDC is currently available on over 15 blockchains, including Avalanche, Base, Solana, and Polygon.
Why Sui Network?
Launched in 2023, Sui Network is an L1 blockchain and smart contract platform designed to simplify and enhance the development of applications and features within the Web3 space. It operates using the Move programming language and supports parallel transaction processing.
As the need for faster and more scalable blockchain solutions grows, Sui’s high throughput and capacity to process complex smart contracts efficiently make it a desirable platform for stablecoins such as USDC. By incorporating with Sui, Circle aims to facilitate a smoother experience.
Developers on Sui will soon be able to integrate native USDC into a diverse range of digital dollar-backed financial products. These solutions could cover multiple sectors, including decentralized finance (DeFi), gaming, decentralized physical infrastructure networks (DePIN), and e-commerce.
Sui’s DeFi ecosystem has accumulated over $700 million in Total Value Locked (TVL) and over $215 million in bridged USDC. The protocol is also among the top 10 blockchain networks for weekly decentralized exchanges (DEXs) trading volume.
Meanwhile, following the announcement, the price of SUI has seen a mild uptrend and is currently changing hands at $1.14, a 2% increase on the day.
