Circle has introduced a new standard called the “bridged USDC standard” that allows developers to launch an unofficial version of its stablecoin, USDC, on new networks. This two-phase process involves the third-party developer controlling the token contracts in the first phase, with the token on the new network backed by a native version on another network. In the second phase, Circle takes control of the contracts and the token becomes backed directly by Circle’s reserves. The token produced in the first phase is unofficial but can later be upgraded to native issuance if desired. This standard aims to eliminate the need for migrations and allows unofficial tokens to become official without swapping. The developer and Circle can transition the token to an official version by freezing new mints on the bridge and transferring ownership of the contract to Circle. The native coins backing the tokens on the new network will be burned, and the new network’s tokens will be backed by Circle’s reserves.
