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USD Coin Strengthens Market Presence with Native Integration on Base and Optimism Networks

USDC's native integration on Base and Optimism networks challenges Tether's market dominance, enhancing user experience and competition

Shashank Bhardwaj
Published: Sep 7, 2023 02:45:07 PM IST

USD Coin Strengthens Market Presence with Native Integration on Base and Optimism NetworksImage: Shutterstock

In a strategic move to solidify its market position and bolster its presence, USD Coin (USDC) has officially expanded its reach by natively integrating with both the Base and Optimism networks. Circle, the company behind USDC, announced this development on September 5, challenging competitors like Tether (USDT).

The native integration of USDC on these networks brings an array of benefits. Circle account holders can now seamlessly send the stablecoin directly from their accounts to either the Base or Optimism network. This integration also extends to Coinbase users, who can now transfer USDC to the Base network. Before this advancement, users on the Base network relied on a bridged version of USDC known as "USDbC" for conducting U.S. dollar transactions.

Circle's collaboration with the ecosystem is instrumental in simplifying the transition from older bridged versions of USDC to the new, official versions. This initiative aims to streamline transactions and provide a more efficient user experience. 

The timing of this launch is paramount for Circle, given the escalating competition within the stablecoin market. Earlier this year, the company experienced a loss of market share to Tether (USDT). Furthermore, the stablecoin landscape has introduced new players like First Digital USD (FDUSD) in June and PayPal USD (PYUSD) in August. The native integration on the Base and Optimism networks represents a strategic maneuver by Circle to regain a formidable position in the fiercely competitive stablecoin landscape.

This launch also signifies the replacement of the USDC.e token that was formerly used on the Optimism network. However, it's important to note that decentralised exchanges on the Optimism network are still in the process of integrating the new version, emphasising that the transition is an ongoing effort.

The introduction of USD Coin (USDC) on the Base and Optimism networks is a significant milestone for Circle in its pursuit of reestablishing its presence in the dynamic stablecoin arena. This move replaces the older USDC.e token on the Optimism network and highlights the ongoing transition for decentralised exchanges. It also underscores Circle's commitment to adapt and thrive in the ever-evolving stablecoin landscape, where competition continuously intensifies.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash