Arbitrum Collaborates with Circle to Support Bridged USDC as Gas Token for Orbit Chains
Arbitrum has announced a partnership with stablecoin issuer Circle to enable the use of bridged USD Coin (USDC) as a custom gas token for Orbit Chains. This collaboration, revealed in a statement shared with Crypto, is part of Arbitrum’s ongoing efforts to enhance its ecosystem.
As the largest Ethereum Layer 2 blockchain network with $3.3 billion in total locked assets, Arbitrum continues to expand its offerings. The network recently faced challenges as its native ARB token hit an all-time low amidst a market downturn resulting in significant liquidations.
Orbit Chain Gas Fees
Introduced in March 2023, Orbit Chains provide advanced throughput and governance features for customizable networks. Initially, these chains only accepted Ethereum for gas fees, but Arbitrum has now enabled the use of any ERC20 token for transactions since January.
The latest development allows Orbit Chains to utilize Circle’s USDC for gas fees, offering users enhanced transaction processes, price stability, and accessibility within the ecosystem.
Benefits of USDC Integration
Arbitrum highlights the advantages of adopting USDC, emphasizing streamlined payments and stability in gas costs. By leveraging USDC’s $1.6 billion supply on Arbitrum, the integration is expected to improve liquidity and accessibility for projects on Orbit Chains.
The use of USDC as a gas token eliminates the need for multiple tokens and simplifies user interactions, ultimately lowering entry barriers for developers and users. Additionally, this move opens up opportunities for projects to apply for Circle’s USDC Grant Program, supporting innovation in gas token utilization.
Overall, the collaboration between Arbitrum and Circle signifies a significant step towards enhancing the efficiency and user experience within the Arbitrum ecosystem.