The creator of stablecoins, Circle, has extended support for Etherem’s zero-knowledge layer-2 solution zkSync to include its stablecoin, USD Coin.
In the announcement from April 9, Circle stated, “native USDC on zkSync for payments, trading, borrowing, and lending is expected to be supported by many leading ecosystem apps and DeFi protocols.” Using USDC on zkSync, developers will be able to build on a solid base that is backed by Circle and designed to last.
Zero-knowledge proofs assess a transaction’s integrity without revealing the underlying data. Meanwhile, Rollups bundle transactions from the Ethereum main layer into a single transaction.
They collectively constitute the fundamental building blocks of the zkSync technology, which sends the completed proof back to the Ethereum mainnet while processing transactions at record speed and low cost at layer 2.
As of April 9, 2024, the zkSync ecosystem includes over 180 decentralized applications and over 5.7 million unique active wallet addresses over the last 30 days.
Similar to how USDC on other blockchains can be redeemed, the zkSync USDC can be exchanged directly for US dollars via circle or digital wallets and exchanges. Through cross-chain bridges, the zkSync USDC can also be exchanged for other USDCs. Circle Mint provides institutional investors with access to the stablecoin as well.
“Businesses and developers use zkSync to benefit from fast, low-cost transactions and native account abstraction,” Circle wrote. “zkSync is on a mission to increase Ethereum’s throughput, and to fully preserve its foundational values.”
Circle has primarily been extending USDC access to other blockchains, though it has occasionally put a stop to these initiatives. Circle abruptly stopped minting USDC on the Tron blockchain on February 21.
The company did not provide a reason for the change, merely stating that it “continually assesses the suitability of all blockchains” as part of its risk management procedure.
Also Read: Circle Brings USDC to Solana, Boosting Stablecoin Adoption
