Circle, the issuer of the stablecoin USDC, has announced that its digital currency is now natively available on the XDC Network. This integration allows users to transfer USDC directly on the XDC Network without needing wrapped tokens, aiming to provide a more secure and efficient way to move funds.
Unlike bridged or wrapped tokens, the new USDC on the XDC Network is fully backed by Circle’s reserves and is directly redeemable for U.S. dollars. This is made possible through Circle’s Cross-Chain Transfer Protocol V2 (CCTP V2), which uses a “burn and mint” mechanism. This protocol burns tokens on the source blockchain and mints new ones on the destination network, which reduces the security risks associated with third-party bridges.
The move is the latest step in Circle’s strategy to expand the presence of its stablecoin across multiple blockchain ecosystems. USDC is now available on 24 networks, including Ethereum, Solana, and Polygon. The company also recently launched its Gateway service, which allows for instant USDC transfers across seven major blockchains.
For the XDC Network, known for its focus on enterprise-grade solutions, the integration of a regulated stablecoin like USDC could help simplify the development of decentralized applications in areas like payments and trade finance. This direct integration is expected to offer users and businesses a higher degree of security and stability, which is a key concern in the blockchain industry.
