Circle and Sony Block Solutions Labs Partner to Integrate USDC on Soneium L2 Blockchain

Circle, issuer of the USDC stablecoin, and Sony Block Solutions Labs, the blockchain arm of tech giant Sony, have announced a strategic collaboration

Stablecoin issuer Circle and Sony Block Solutions Labs, a blockchain arm of tech giant Sony, have announced a strategic collaboration to integrate and bring USDC on Soneium, Sony’s Ethereum layer-2 blockchain.

The partnership aims to establish bridged USDC as a primary token for value exchange on Soneium, according to a press release by Circle on Monday, Oct. 28.

The parties will be utilizing Circle's Bridged USDC Standard, a specification that allows for deploying a bridged form of USDC on Ethereum Virtual Machine (EVM)-compatible blockchains. The bridged USDC will serve as a proxy for native USDC, which is fully reserved and regulated on the Ethereum blockchain.

Launched in August 2024, Soneium is a public layer-2 blockchain developed by Sony Block Solutions Labs, a joint venture between Sony Group Corporation and Startale Labs. The platform is designed as a versatile, general-purpose blockchain ecosystem to support diverse needs across various verticals and serve users globally.

According to the announcement, the collaboration will pave the way for diverse applications in the digital entertainment and finance sectors.

Jun Watanabe, Chairman of Sony Block Solutions Labs, highlighted the potential of the partnership to redefine these industries.

“This partnership aligns with our vision of creating a more interconnected and efficient digital ecosystem,” Watanabe said.

The partnership is also significant in advancing Circle's efforts to drive stablecoin adoption and empower creators through Web3 experiences, according to Circle CEO Jeremy Allaire.

“Together, we hope to re-imagine how creativity and innovation are supported in the digital age,” Allaire said.

Standards and future upgrades

The integration of bridged USDC on Soneium is expected to enable seamless, secure, and borderless transactions, fostering a global economy built on decentralized technologies, according to the announcement.

By following Circle’s standard implementation process, Soneium maintains the option for a future upgrade to native USDC issuance.

The partnership comes as Circle continues to expand its presence in the stablecoin market. As the world’s second-largest stablecoin issuer, Circle's USDC has a circulating supply of $35.7 billion, according to data from CoinGecko.

The stablecoin's supply has increased by 47% since the beginning of the year, though it remains 36% below its peak of $56 billion in June 2022.

The partnership also follows recent developments in Sony’s blockchain initiatives. In early September, Samsung Next, the investment arm of Samsung, announced a strategic investment in Startale Labs, Sony's L2 blockchain developer.

Soneium has also formed partnerships with other prominent blockchain companies, including Astar, Transak, Alchemy, Chainlink, Optimism, and The Graph.

In April 2024, Circle expanded its Web3 services to Solana, enhancing USDC's integration options for businesses.