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- Sonic transitions to native USDC, enhancing liquidity and developer usability starting May 6.
- CCTP V2 integration boosts cross-chain compatibility with faster, safer transfers across blockchains.
- The upgrade will unlock new capabilities for smart contracts, driving growth within Sonic’s expanding ecosystem.
Sonic, one of the most popular blockchains to handle stablecoin transactions, is going to transition from bridged USDC to native. This is to enhance the liquidity factor and the usability factor of the program for the developers. Sonic Labs announced that the transition will occur starting on the 6th of May, with the expiration of the transition occurring next week. The integration of CCTP V2 as a cross-chain asset transfer protocol will improve compatibility.
Founded in December 2024, Sonic grew tremendously to become one of the primary platforms for bridging USDC. It now controls more than $480 million in bridged USDC and has a total value locked of $1 billion. The transition to native USDC is one of the measures to increase the circulation and make cross-chain operations more efficient. The update brings consistency in the varied aspects to make it convenient for the developers.
Sonic Cross-Chain Transfers
There will be no need for either the developers or the users to do anything during this upgrade. USDC.e tokens will be redeemed with the equivalent native USDC tokens at 1 for 1. It helps to avoid interactions between swaps or contract changes based on market value quotations and notions. The USDC.e will still run concurrently with all the trading and bridging capabilities when used together with other third-party tools.
Another important feature of this update is the integration of CCTP V2. Circle’s protocol also makes transferring native USDC faster, safer, and more efficient from the perspective of capital across the supported blockchains.
The burn-and-mint mechanism enables USDC to be burned in one blockchain and instantly minted in another, eliminating the need for wrapped assets. This innovation makes it easier to use other chains and integrate into them or with others for developers.
Enhancing Blockchain Growth
With this upgrade, Sonic will be able to join other platforms such as Avalanche, Base, Ethereum, and Linea in the CCTP V2 network. The new protocol will enhance the communication between different blockchains, thereby making it convenient for developers to develop on Sonic. During the transition, Circle will also gain control of the bridged USDC contract, which will be followed by native USDC.
The migration to native USDC and the implementation of CCTP V2 will open up new potential for further expansion of Sonic’s ecosystem. Currently, over 125 applications utilise the platform. This upgrade will provide smart contract capabilities, increase the capacity of circulation, and encourage the growth and development of the Sonic project among related communities. The upgrade places Sonic right in the main developments of the future blockchain environment.
