Sonic Launches Native USD Coin (USDC) Targeting Increased Institutional Adoption

Circle, the issuer of the second-largest stablecoin by market capitalization, has launched native USD Coin (USDC) on Sonic.

The move marks a significant upgrade for Sonic, transitioning it from bridged USDC.e to a fully native stablecoin experience. This strategic deployment is set to enhance both security and interoperability for users and developers within the Sonic ecosystem.

In a seamless process, existing USDC.e tokens on Sonic have been automatically converted to native USDC. The token contract address, however, remains the same, ensuring complete continuity across dApps and wallets.

This transition, done in a backward-compatible manner, reduces the reliance on third-party bridges, which have been targeted in previous exploits within the DeFi space. For users, this translates to greater assurance in the safety and transparency of their assets.

Cross-chain composability goes live with CCTP V2

Alongside the native USDC launch, Sonic has integrated Cross-Chain Transfer Protocol Version 2 (CCTP V2) from Circle, to move native USDC.

This functionality is crucial for DeFi users who require fast, low-cost, and secure transfer of capital between different blockchain ecosystems.

CCTP V2 enables the burning of USDC on the source chain and minting of the same amount on the destination chain. This method minimizes the fragmentation of liquidity and maximizes the composability of decentralized applications across various networks.

Currently, CCTP V2 supports cross-chain transfers with Ethereum, Avalanche, Base, and Linea.

Institutional access and ecosystem growth ahead

Institutional users can now access Circle Mint directly on Sonic for minting or redeeming USDC at a 1:1 rate with the U.S. dollar.

This offering is expected to drive greater adoption from enterprise-level participants and further deepen on-chain liquidity.

Prior to this upgrade, Sonic held more than $480 million in bridged USDC, with its total value locked (TVL) approaching $1 billion.

The introduction of native USDC is anticipated to increase capital efficiency and attract additional users and liquidity providers to the network.

With this launch, USDC is now natively supported on 20 blockchain networks, highlighting Circle’s commitment to a more connected and efficient multi-chain future.

For Sonic, the partnership with Circle marks a pivotal moment in its journey toward becoming a leading DeFi platform.