Arbitrum Forms Alliance With Circle To Incorporate USDC As Tailored Gas Token For Orbit Chains

Ethereum Layer 2 scaling solution Arbitrum announced a collaboration with a financial services provider Circle to implement Circle’s bridged USDC as a specific gas currency on Arbitrum Orbit the blockchains. This partnership is set to streamline transaction flows in the Arbitrum ecosystem, providing users with improved convenience, price stability, and overall ease of use.

This upgrade allows users to handle transaction fees with bridged USDC as their gas currency, eliminating the need to maintain various tokens just to pay for gas fees, ultimately simplifying the transaction experience and promoting user-friendliness.

Furthermore, as a digital US Dollar, USDC It will ensure price stability, maintaining a one-to-one peg with the US Dollar, which is crucial for both end-users and developers. This kind of stability guarantees a dependable and predictable means for settling gas fees. With more than $1.6 billion in USDC already circulating on Arbitrum, integrating USDC as a gas token lowers the barrier for newcomers and new projects venturing into the Arbitrum Orbit blockchains. This integration will make interactions within the Arbitrum ecosystem a lot easier by removing the need to convert different assets.

For developers, this collaboration will present an additional avenue for tailoring the Orbit blockchains and create new opportunities to apply for funding from Circle for development projects. It will also facilitate the rapid setup of services with Arbitrum's Rollup-as-a-Service (RaaS) providers like AltLayer , Caldera, and Conduit , with further assistance from Ankr and Alchemy anticipated shortly.

How This Layer 2 Transforms Ethereum

Arbitrum is a Layer 2 optimization solution designed for Ethereum, focusing on enhancing scalability and efficiency. Leveraging rollup technology, it increases transaction capacity and reduces costs, all while safeguarding Ethereum’s inherent security. Arbitrum offers a range of Layer 2 scaling solutions for Ethereum, featuring two currently operational blockchains: Arbitrum One and Arbitrum Nova.

At the same time, Arbitrum Orbit equips developers with the necessary tools to craft and launch their own customizable dedicated blockchains using Arbitrum's innovative tech. This feature allows users to set up either Arbitrum Rollup or AnyTrust blockchains. Orbit Chains can operate as Layer 2 blockchains that interact directly with Ethereum or as Layer 3 blockchains that connect with any Ethereum Layer 2 solution, such as Arbitrum One. Significantly, users keep ownership of their Orbit Chains, which promotes
a decentralized model of ownership, validation, and additional elements.

Recently, Arbitrum Orbit has established itself as a launch platform for both testnet and mainnet setups for on-chain infrastructure providers like Ankr and Asphere, alongside the Decentralized Physical Infrastructure Network (DePIN) protocol, known as Destra Network. This collaboration aims to cultivate a DePIN framework for Web3 initiatives within this ecosystem.