Circle Internet Financial, the company behind the US Dollar Coin (USDC), has announced the integration of the Arbitrum layer-2 scaling chain into its Web3 infrastructure platform. As stated in a blog post from September 12, this addition provides Circle’s USDC-focused tools to Arbitrum, the Ethereum layer 2 solution with around $2.5 billion in TVL.
Arbitrum’s integration into Circle’s Web3 Services portfolio means that developers can now work with USDC programmable wallets, smart contract tools, and gas-fee abstraction on Arbitrum. This step broadens Circle’s backing of multiple blockchain networks, which it already embraces, for Avalanche, Ethereum, Polygon PoS, and Solana. Arbitrum integration enhances Circle’s full-stack blockchain architecture and provides stable solutions for building on-chain products and services.
While analysing competition in stablecoins, it is imperative to focus on PayPal US, PayPal’s US dollar-backed stablecoin, which was introduced in 2023 and has a relatively high market capitalisation of over $1 billion. Circle unveiled natively available USDC on Arbitrum earlier this year, allowing users to have instant minting of availing of USDC on L2 and have it integrated into Circle’s CTP, Multi-chain USDC bridging protocol for efficient bridging of USDC across chains.
Circle’s Web3 Tools Boost Development on Arbitrum’s Layer-2 Solution
Arbitrum One is an optimistic rollup Layer 2 solution that batches transactions and brings them to the primary Ethereum chain. These improvements increase Ethereum’s scalability and throughput with low-cost and high-security features, accommodating 40,000 TPS. Arbitrum’s platform covers gaming, social networking, and decentralized finance applications and hosts almost $4.7 billion of stablecoins utilized across the DeFi protocols, including Aave, Uniswap, and GMX.
Circle’s support through its Web3 Services product line focuses on enabling developers and fostering Arbitrum’s growth. Circle is still living up to its goal of supporting innovation in DeFi and beyond by offering flexible and interoperable tools for multi-chain application development.
