The Arrival of Native USDC on Linea Brings the Industry's First Bridged-to-Native Upgrade

A global leader in fintech and the issuer of stablecoins Circle has officially introduced native USDC on the zkEVM Layer 2 blockchain known as Linea.

Linea is a zkEVM Layer 2 blockchain developed by ConsenSys aimed at scaling Ethereum's capabilities while preserving decentralization and security. Since its inception in July 2023, Linea has amassed over $183 million in Total Value Locked (TVL) across 400+ applications, processing a staggering 250 million transactions, thus becoming the foremost zkEVM blockchain in terms of secured value.

With this launch, Linea is poised to be the first blockchain to make a smooth transition from bridged USDC to native USDC without any necessary input from developers or users. Additionally, it will be the first to embrace CCTP V2, scheduled to launch on Avalanche, Base, and Ethereum. CCTP V2 allows for a burn-and-mint model that streamlines secure, efficient USDC transfers between blockchains, ensuring quicker settlements and enriched smart contract capabilities post-transfer, all without needing to lock in liquidity.

As one of the early adopters of the Bridged USDC Standard, Linea demonstrated the benefits of this approach by significantly reducing liquidity fragmentation. It accomplished this by unifying the bridged USDC for the entire ecosystem. This standard has been instrumental in sparking activity within the Linea ecosystem, with more than $19 million in bridged USDC, which constitutes over 71% of its stablecoin supply.

The upgrade to native USDC will greatly benefit Linea's developers, applications, and its user base. This enhancement allows for an effortless transition, negating the need for educational initiatives or liquidity migration incentives. Post-upgrade, any bridged USDC (USDC.e) on Linea will seamlessly convert into native USDC (USDC) with no necessity for code adjustments or asset exchanges from developers or token holders.

Native USDC The integration of native USDC, along with CCTP V2, brings essential features like regulatory compliance, full reserves, and a redeemable 1:1 alignment with US dollars. It also opens the door to institutional on/off-ramps via Circle Mint for qualifying businesses. The seamless addition of native USDC into both new and existing applications ensures rapid, secure, and efficient cross-chain transactions.

How The Upgrade Will Be Implemented

The process of upgrading is anticipated to last about 1-2 weeks. Initially, on March 16, Linea will halt bridging activities for bridged USDC (USDC.e) on its primary connection between Ethereum and Linea, while ensuring that any pending transactions are resolved. Other bridging routes will continue to operate unaffected.

Following this, Linea will hand over the bridged USDC contract to Circle, paving the way for the transition to native USDC. Subsequently, Circle will unveil CCTP V2, Linea creating connections with Avalanche, Base, and Ethereum to facilitate streamlined cross-chain transfers of USDC.

During the upgrade window, bridged USDC (USDC.e) on Linea will remain fully operational for trading, spending, and swapping. Users will still have the ability to exchange USDC.e for any supported asset and bridge to different blockchains through third-party bridging services.