Gnosis Chain xDAI Bridge to Switch to USDS as Default Token on June 8, 2025

Gnosis Chain will update its xDAI bridge to use USDS as the default Ethereum token on June 8, 2025. The transition requires third-party applications to integrate with the new Bridge Router contract by the deadline. The move may influence the project's infrastructure and lead to financial changes for ecosystem participants, with concerns about potential liquidity issues and the adoption of a centralized stablecoin.

Gnosis Chain, a Layer 1 blockchain closely aligned with Ethereum, has announced plans to update its xDAI bridge to use USDS as the default Ethereum token. This transition, scheduled for June 8, 2025, aims to enhance the bridge's functionality and integrate seamlessly with the broader Ethereum ecosystem. The move requires third-party applications to integrate with the new Bridge Router contract by the deadline, which could lead to infrastructure changes and financial adjustments for ecosystem participants.

The transition to USDS, a stablecoin pegged to the U.S. dollar, follows the successful implementation of the Pectra upgrade on Ethereum. Pectra, an upgrade comprising 11 Ethereum Improvement Proposals (EIPs), introduced significant improvements to user experience and network performance, including a new transaction type for account abstraction and enhanced gas payment flexibility. Gnosis Chain, having played a crucial role in testing Pectra, will now leverage its experience to facilitate the bridge update.

The shift to USDS as the default token may influence the project's infrastructure and lead to potential liquidity issues, as well as concerns about the adoption of a centralized stablecoin. However, the move is expected to streamline the bridge's operations and enhance its usability for users and developers alike. Gnosis Chain's goal is to accelerate the adoption of Ethereum, and this update is seen as a step towards achieving that objective.

Gnosis Chain has a history of successful testing environments, including its Chiado testnet and Ethereum's new Hoodi testnet, which have contributed to the stability and reliability of the blockchain. The transition to USDS is expected to build upon this foundation, ensuring a smooth integration with the broader Ethereum ecosystem.

References:
[1] https://www.tradingview.com/news/the_block:93164782f094b:0-pectra-release-on-gnosis-chain-bodes-well-for-major-ethereum-hard-fork-next-week-safe-s-meissner-says/