Sonic Network to Improve USDC Implementation from Bridged to Native, Introduces Version 2 of CCTP Support
In a major move, Sonic - one of the fastest-growing blockchain platforms for stablecoin activity - is set to ditch the bridged USDC in favor of native USDC and integrate Circle's Cross-Chain Transfer Protocol V2 (CCTP V2).
This transition kick-starts on May 6, with the bridging taking a brief pause, and the full deployment expected to be completed within about a week, as announced by Sonic Labs. Having launched in December 2024, Sonic has swiftly risen to prominence as a leading hub for bridged USDC, with over $480 million in bridged USDC and $1 billion in total value locked.
This shift to native USDC, usdc-0.01%, aims to streamline liquidity and offer developers a more consistent user experience. The upgrade is completely hassle-free - no action is required from developers or users. Existing USDC.e tokens will automatically convert to native USDC, negating the need for manual swaps or contract changes. During the upgrade, USDC.e will remain fully functional for trading and bridging through third-party tools.
The upgrade also brings CCTP V2 to Sonic. Developed by Circle, CCTP V2 uses a burn-and-mint model to enable faster, more secure USDC transfers across supported blockchains. Essentially, CCTP V2 allows native USDC to be burned on one blockchain and instantly minted on another, facilitating fast, secure, and capital-efficient cross-chain transfers without the need for wrapped assets. This upgrade improves interoperability across supported chains and simplifies the integration for developers.
Sonic is set to join Avalanche, Base, Ethereum, and Linea as part of CCTP V2's interoperable network. Circle will take over ownership of the bridged USDC contract during the transition, enabling the rollout of native USDC and integration of Circle Mint services for institutional access. This move is expected to enhance smart contract functionality, improve liquidity, and unlock new use cases across Sonic's growing ecosystem of over 125 applications.
[1] Sonic's launch and rapid rise in the cryptocurrency market[2] Understanding the benefits of native USDC and Circle's CCTP V2 for Sonic's future growth
- Sonic, a rapidly growing blockchain platform for stablecoin activity, is transitioning from bridged USDC to native USDC and integrating Circle's Cross-Chain Transfer Protocol V2 (CCTP V2).
- This transition, commencing on May 6, involves a temporary pause in bridging and an anticipated completion within a week, as announced by Sonic Labs.
- The shift to native USDC (usdc-0.01%) aims to improve liquidity and offer developers a more consistent user experience.
- The upgrade will streamline USDC transfers across supported blockchains, using a burn-and-mint model for faster, more secure, and capital-efficient cross-chain transfers.
- Sonic will join Avalanche, Base, Ethereum, and Linea as part of CCTP V2's interoperable network, with Circle taking over ownership of the bridged USDC contract during the transition.
- As a result, Sonic aims to enhance smart contract functionality, improve liquidity, and unlock new use cases across its growing ecosystem of over 125 applications, all slated for 2024.
