Circle, the stablecoin issuer, has expanded its support for its native stablecoin, USD Coin (USDC), to Ethereum’s zero-knowledge layer-2 solution, zkSync. According to Circle, many leading ecosystem apps and DeFi protocols are expected to support native USDC on zkSync for payments, trading, borrowing, and lending. Developers can now build on a stable foundation with the support of Circle. With the addition of zkSync, USDC is now supported on 16 blockchains, including Ethereum, Solana, Base, Arbitrum, and others.
The zkSync technology combines zero-knowledge proofs and rollups to process transactions at a record speed and low cost at layer 2. Zero-knowledge proofs ensure transaction integrity without revealing the supporting evidence, while rollups bundle transactions off the Ethereum main layer into a single transaction. 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 in 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. It can also be swapped for other USDCs using cross-chain bridges. Institutional investors can access the stablecoin via Circle Mint. Circle emphasizes that businesses and developers can benefit from fast and low-cost transactions and native account abstraction by using zkSync. The company is dedicated to increasing Ethereum’s throughput and preserving its foundational values.
Circle has been expanding access to USDC on other blockchains, although it has temporarily halted such efforts in the past. On Feb. 21, Circle abruptly stopped USDC minting on the Tron blockchain without providing a reason. Circle stated that it continually assesses the suitability of all blockchains as part of its risk management process.
In related news, Binance has followed Circle’s lead and dropped USDC support on Tron. The move comes after the United States Securities and Exchange Commission sued Justin Sun and the Tron Foundation last year, alleging they offered unregistered securities and conducted manipulative trading. Sun has denied these allegations.