Circle Partners with Sui Network to Expand USDC Stablecoin Integration

Circle, the USD Coin (USDC) stablecoin issuer, is partnering with Sui Network, the Layer-1 blockchain protocol, to expand the crypto asset's integration.

Circle, the issuer of the USD Coin (USDC) stablecoin, is partnering with Sui Network, the Layer-1 blockchain protocol, to integrate the crypto asset.

In a Sept. 17 announcement on X, co-founder and CEO Jeremy Allaire noted that the partnership would expand the stablecoin’s support across several blockchains. Notably, USDC is the second-largest stablecoin by market capitalization behind Tether (USDT).

Integrating the USDC Stablecoin into the Sui Network

The integration will see USDC become natively supported on Sui, enabling faster, cheaper, and more secure cross-chain transfers of the stablecoin.

In particular, the Cross-Chain Transfer Protocol (CCTP) tool is used for the permissionless transfer of any Fungible Token (FT) or Non-Fungible Token (NFT) from one chain to another.

This tool is used by several Layer-1 blockchains, including Sui, to enable the native burning and minting of assets for cross-chain transfers.

With native support for USDC, the stablecoin can now be transferred across networks supported by CCTP without the need for pegged tokens or centralized wrappers.

Moreover, the stablecoin is expected to become more secure, usable, and interoperable for developers and end users.

Sui is a Layer-1 blockchain and smart contract platform that was introduced in 2023. The protocol is intended to increase the productivity of Web3 application development through greater scalability and simplification of complex processes.

To this end, Sui uses the Move programming language, which was initially developed by Meta Platforms for the Diem blockchain.

However, the language is now open-source and used by several other blockchains. Notably, Move facilitates parallel transaction execution, which is a key aspect of Sui’s high throughput design.

Strengthening the Sui Ecosystem

The integration was announced onstage at Sui Wave II, a Web3 developer conference in Los Angeles. Speaking on the matter, Mysten Labs co-founder and chief product officer Adeniyi Abiodun noted that the development further positions Sui as a leader in the sector.

“This integration makes sense for both communities and will strengthen Sui’s position as a leading Layer-1 blockchain.

Due to its steady value and peg to the US dollar, users can feel more confident in the network thanks to USDC’s presence.

Moreover, this partnership opens up new opportunities for developers to create more secure and easily accessible decentralized apps (dApps).”

Since its inception as an Ethereum ERC-20 token, USDC has expanded its native support to many other blockchains.

These include Solana, Polkadot, and Algorand, among others. Notably, Circle intends to keep integrating the USDC stablecoin into more blockchain networks.

In particular, Circle recently revealed plans to extend USDC to the Soneium network, an Ethereum layer-2 solution created by Sony Block Solutions Labs.

Should this integration be completed, it would further expand the stablecoin’s reach in the decentralized finance (DeFi) arena.