Circle Boosts DeFi Speed and Trust with Native USDC, No Bridges Needed

Circle, the issuer of USD Coin (USDC), has deployed native USDC and the Cross-Chain Transfer Protocol (CCTP) Version 2 on Hyperliquid, a deep-order book crypto exchange. This move is part of Circle's broader strategy to expand USDC's presence across multiple blockchain networks, enhancing its utility in decentralized finance (DeFi) and cross-chain transactions. Native USDC refers to the stablecoin being issued directly on the Hyperliquid blockchain, as opposed to being bridged from another network, which reduces latency and gas costs while improving user experience and transaction efficiency [1].

The deployment of native USDC on Hyperliquid supports faster, more cost-effective transactions for traders and liquidity providers, aligning with the exchange’s focus on high-performance trading environments. Alongside native USDC, the CCTP V2 allows for seamless cross-chain transfers without the need for third-party bridges, reducing counterparty risk and increasing interoperability across chains. The updated version of CCTP reportedly includes enhanced security features and improved user interfaces to streamline token movement between different blockchain ecosystems [1].

Circle's initiative to deploy native USDC on Hyperliquid builds upon its ongoing efforts to integrate USDC into 16 blockchain networks, including Ethereum, Solana, Algorand, and Sui. This expansion has been driven by the need to address liquidity fragmentation and offer a consistent experience for users across different blockchains. The stablecoin is fully backed by U.S. dollars and short-term U.S. government securities, with reserves held by major financial institutions such as BlackRock and Bank of New York Mellon. Monthly attestations ensure transparency, which has contributed to USDC’s growing adoption among institutional and retail users [2].

Hyperliquid, a centralized yet deep-order book exchange, has become an increasingly popular platform for high-frequency trading and DeFi participants due to its speed and liquidity. The integration of native USDC and CCTP V2 is expected to attract more users to Hyperliquid, particularly those who prioritize fast settlement times and minimal transaction costs. This partnership also supports the broader trend of DeFi platforms seeking to reduce reliance on centralized liquidity providers while maintaining user-friendly interfaces [1].

Circle’s strategy for USDC is centered on building a robust multi-chain ecosystem that supports seamless token movement and broad utility across DeFi and traditional finance. The company has also been rolling out native USDC deployments on Layer 2 (L2) solutions like Base and zkSync, as well as other blockchains such as Polkadot and Sui. These efforts highlight the importance of interoperability in the evolving crypto landscape, as users increasingly demand access to a wide range of blockchain-based services without sacrificing speed or cost efficiency [2].

The deployment of native USDC and CCTP V2 on Hyperliquid is a significant step in the continued expansion of USDC as a leading stablecoin. With a market capitalization of approximately $72 billion, USDC has positioned itself as a more transparent and institutionally backed alternative to Tether (USDT), which faces scrutiny over its reserves and governance structure. As DeFi and cross-chain activity continue to grow, the adoption of USDC across multiple blockchains is expected to increase, further solidifying its role in the global digital asset ecosystem [1].

Source:

[1] Multichain USDC | Experience the power of ... (https://www.circle.com/multi-chain-usdc)

[2] Better Stablecoin Buy: Tether (USDT) vs. USD Coin (USDC) (https://www.nasdaq.com/articles/better-stablecoin-buy-tether-usdt-vs-usd-coin-usdc)