In a significant move for its rapidly expanding ecosystem, the Sonic blockchain is preparing to enhance its stablecoin infrastructure by adopting native USDC and integrating Circle’s Cross-Chain Transfer Protocol V2 (CCTP V2).
This strategic upgrade signifies a shift away from bridged USDC (often denoted as USDC.e). The transition process is scheduled to commence with a temporary pause on bridging activities around May 6, aiming for completion approximately one week later.
Since its inception in December 2024, Sonic has rapidly emerged as a significant player in the stablecoin space, attracting over $480 million in bridged USDC deposits and securing $1 billion in total value locked (TVL). The upcoming migration to native USDC is designed to optimize liquidity flows and provide a more seamless development environment.
This upgrade requires no direct intervention from users or developers within the Sonic ecosystem.
Existing bridged USDC.e tokens will automatically be converted to native USDC, streamlining the process and removing the need for manual swaps or adjustments to smart contracts.
Throughout the upgrade window, USDC.e will continue to function normally for trading and bridging operations facilitated by third-party platforms.
Introducing CCTP V2
The integration also introduces Circle’s advanced Cross-Chain Transfer Protocol (CCTP V2) to the Sonic network. This protocol employs an innovative burn-and-mint mechanism, enabling faster and more secure native USDC transfers across compatible blockchains.
Essentially, CCTP V2 allows USDC to be destroyed on one chain and recreated natively on another almost instantly. This promotes capital efficiency and enhances security by eliminating reliance on wrapped or bridged assets for cross-chain transactions.
This capability improves interoperability across participating networks and simplifies the integration process for developers building cross-chain applications.
With this update, Sonic joins a growing network of CCTP V2-enabled blockchains, including Avalanche, Base, Ethereum, and Linea.
Circle is set to assume ownership of the legacy bridged USDC contract as part of the transition. This facilitates the rollout of native USDC and integrates Circle Mint services, offering institutional pathways for accessing USDC on Sonic.
The initiative is anticipated to bolster smart contract capabilities, improve overall liquidity depth, and pave the way for innovative applications within Sonic’s expanding ecosystem, which currently hosts over 125 decentralized applications.