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Cryptocurrency News Articles

Circle Completes Transition to Native USDC on Sonic, Launching CCTP V2

May 14, 2025 at 02:55 am

Circle has officially completed the transition from bridged to native USDC on Sonic. This upgrade improves liquidity and adds new features.

After May 2025 saw the arrival of bridged USDC on Sonic, the protocol has now completed the transition to native USDC.

The upgrade saw the remaining bridged tokens automatically converted into native USDC with no immediate action required by users or developers. This transition ensures users retain compatibility and complete access to Sonic’s liquidity.

The transition saw the upgrade of CCTP to V2 and the introduction of Hooks for cross-chain smart contract programmability.

Completing Native USDC Deployment on Sonic Labs

As announced by Circle, USDC has officially launched on Sonic Labs, marking the completion of the transition from bridged to native USDC in May 2025.

Prior to the upgrade, the bridged USDC supply on Sonic reached $500 million. After the upgrade, CCTP V2 was launched with Hooks to support faster, more automated cross-chain operations. The protocol includes Hooks, which are modules that can be added to smart contracts to perform specific actions post-transfer, reducing the need for manual intervention and improving the user experience for onchain workflows.

CCTP V2 will enable users to enjoy near-instant USDC transfers across supported blockchains, offering greater flexibility for DeFi applications. USDC has become natively supported by 20 chains, expanding its cross-chain reach. Developers can easily integrate CCTP V2 into their apps with the updated documentation.

The new version also expands programmable liquidity for developers. Applications can trigger smart contracts post-transfer to enable dynamic DeFi operations. These include swaps, lending, and payments immediately after the USDC reaches a destination chain.

First Use Cases With Aave, Binance and RedotPay

Sonic’s support for native USDC and CCTP V2 unlocks several new use cases across finance, commerce and crosschain tools. Day one integrations include Aave, Binance and RedotPay, each utilizing USDC for various financial services.

RedotPay plans to expand USDC-linked payment cards and remittances using the upgraded system to introduce real-world usage and commerce tools for users. Meanwhile, platforms like Socket will use CCTP for smooth cross-chain liquidity flows.

Circle developers, businesses and institutions can start building with native USDC on Sonic today. Qualified companies can apply to open Circle Mint accounts for direct fiat on/off-ramps. Individuals and smaller businesses may access USDC through Circle’s growing partner network.

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