Circle Launches Native USDC on Sonic Blockchain
- Circle’s USDC goes native on Sonic, enhancing liquidity.
- Seamless user experience expected post-transition.
- Regulatory compliance improved for native USDC on Sonic.
Circle has announced that native USDC is now live on the Sonic blockchain, marking a pivotal step in expanding decentralized finance capabilities with it being fully operational as of May 13, 2025.
This move signals greater regulatory compliance and could lead to increased institutional adoption as native USDC enables cross-chain capabilities.
Transition to Native USDC
Circle has transitioned its USDC issuance from a bridged format to native on the Sonic blockchain. The process involved no action from users or developers, ensuring compatibility and continuity in platform liquidity.
“Circle announced that USDC is now live on Sonic Labs, completing the transition from bridged to native USDC in May 2025…” – Wu Blockchain
Collaboration and Benefits
Circle is the issuer of USDC, with Sonic Labs, developer of the Sonic blockchain, partnering on this upgrade. Native USDC supports direct minting and redemption, crucial for liquidity.
The transition benefits various stakeholders, including developers and users, by preserving existing smart contract addresses and the total value locked on Sonic. Enhanced DeFi liquidity is expected due to this development.
Financial Implications
Financial implications include the transition of $500 million in bridged USDC and a $10M investment from Galaxy in Sonic’s native token. This reflects robust institutional interest and backing.
Circle’s proactive strategy with native USDC rollout aligns with its past on other chains, suggesting potential increases in liquidity and institutional partnerships. Native issuance strengthens compliance and fiat convertibility in the crypto sector.
