Stablecoins are the backbone of the on-chain economy. They allow traders to manage their assets in a stable, dollar-pegged form. This is essential for securing profits, avoiding market volatility, serving as a reliable medium of exchange, or simply holding value until new opportunities arise.
USDC is one of the most widely used stablecoins. As such, it is frequently bridged to other networks, resulting in different versions of USDC—like USDC.e on Avalanche or USDbC on Base. These variations can create confusion and fragment liquidity.
To address this issue, the OP Stack has created a reference implementation for deploying a bridged USDC standard on OP Stack chains. This initiative enables a potential future upgrade from bridged USDC to native USDC, eliminating the complexities of managing multiple versions of USDC.
Gelato is now integrating the bridged USDC standard into its existing OP chains—such as Ethernity, Lisk, Camp, and GameSwift—as well as all upcoming OP Stack deployments. This empowers users and builders to fully leverage USDC across the Superchain.
But to truly appreciate what this integration accomplishes, it’s important to first understand the distinction between native and bridged USDC.
What Is Native USDC?
Native USDC refers to the original form of USD Coin (USDC), issued directly by Circle, a regulated fintech company. It is fully backed by US dollars, ensuring that each USDC can always be redeemed 1:1 for real currency. Native USDC is the official and trusted version of the coin on any blockchain where it is issued, and it is interoperable across multiple networks via Circle’s Cross-Chain Transfer Protocol (CCTP). Circle has expanded native USDC to 15 networks.
What Is Bridged USDC?
Bridged USDC is a copy of native USDC. It is created when original USDC is locked on its main network and replicated on another network using a bridge protocol. Unlike native USDC, these bridged versions are not directly connected to Circle’s dollar reserves and are not always redeemable for actual currency. As a result, they carry additional risks.
The Role of Bridged USDC in New Networks
Bridged USDC offers a rapid solution for new L1 and L2 chain teams—as well as third-party bridge deployers—to bootstrap stablecoin liquidity. Although these versions are unofficial and not directly redeemable by Circle, they act as crucial proxies that enable early ecosystem development and user engagement.
As L2s, L3s, and modular blockchains become more common, significant USDC liquidity is sometimes brought in via third-party bridges before Circle can issue native USDC.
While migrating from bridged to native USDC is possible, it is far from ideal due to potential liquidity fragmentation and the complexities involved in the migration process.
To solve this, Circle introduced the Bridged USDC Standard—a specification and process for deploying a bridged form of USDC on EVM blockchains, with an optional future upgrade path to native issuance by Circle.
In simple terms, the Bridged USDC Standard is a framework that allows the creation of bridged USDC on EVM blockchains where native USDC is not yet deployed—with the possibility of a seamless upgrade to native USDC by Circle in the future.
The Challenge With USDC on OP Stack Chains
However, the Bridged USDC Standard was not initially compatible with the OP Stack bridge. This created uncertainty for chain operators regarding how to securely onboard USDC to their chains. Without a clear upgrade path, chains risked liquidity fragmentation, user confusion, and potential security vulnerabilities.
To resolve these challenges, the OP Stack is now compatible with the Bridged USDC Standard. This solution ensures that chains are prepared for a future upgrade to native USDC.
What Does This Enable?
Upgradability: The standard facilitates a smooth transition from bridged to native USDC issuance if Circle decides to upgrade. This eliminates the complexity and disruption typically associated with migrating between bridged and native versions. Developers and users can benefit from native USDC without additional migration efforts.
Unified Liquidity: By adopting the bridged USDC standard, OP Stack chains can consolidate liquidity around a single form of bridged USDC. This reduces the fragmentation often caused by multiple bridges and standards.
Security and Audits: The bridged USDC standard is based on audited ERC-20 contract code that has been rigorously tested and has secured billions in liquidity. This provides confidence in the safety and integrity of the bridged token.
No User Interruption: Users are not required to swap tokens. The upgrade to native USDC occurs automatically, ensuring a seamless transition.
By implementing this standard across existing and upcoming Gelato OP chains, users and builders can now fully utilize USDC on the Superchain.
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Frequently Asked Questions
What is the difference between native and bridged USDC?
Native USDC is issued directly by Circle and is fully redeemable for US dollars. Bridged USDC is a wrapped version created by third-party bridges, which may carry additional risks and is not directly backed or redeemable by Circle.
Why is the Bridged USDC Standard important for new chains?
It allows new blockchain networks to bootstrap USDC liquidity quickly while providing a clear, secure upgrade path to native USDC in the future—reducing fragmentation and user confusion.
How does the upgrade from bridged to native USDC work?
The upgrade is designed to be automatic and seamless. Users do not need to take any action—their bridged USDC tokens will be replaced or upgraded to native USDC upon Circle’s activation of the standard.
Is bridged USDC safe to use?
While bridged USDC carries more risk than native USDC, the Bridged USDC Standard uses thoroughly audited smart contracts and is designed with security and future upgradability in mind.
Which Gelato chains support this standard?
All existing Gelato OP Stack chains—including Ethernity, Lisk, Camp, and GameSwift—as well as all future Gelato-deployed OP chains will support the Bridged USDC Standard.
Can other stablecoins be bridged using this standard?
Currently, the standard is designed specifically for USDC, but similar frameworks may be developed for other stablecoins in the future.