Circle and Sony collaborate to integrate USDC into Soneium
Circle, the entity behind the USDC stablecoin, has teamed up with Sony Block Solutions Labs, the blockchain division of the technological behemoth Sony, to incorporate USDC into Soneium, an Ethereum layer-2 blockchain spearheaded by Sony.
In the announcement made by Circle, the focus of this partnership is to position USDC as a pivotal currency for transactions on Soneium, utilizing the Circle Bridged USDC Standard. This framework enables the utilization of a bridged variant of USDC on blockchains compatible with the Ethereum Virtual Machine (EVM), acting as a stand-in for the USDC that resides on Ethereum.
Soneium, which was launched in August 2024, represents a seminal layer-2 blockchain initiative by Sony Block Solutions Labs, birthed from a collaboration between Sony Group Corporation and Startale Labs. The structure of this platform is crafted to cater to an array of sectors, providing a broad, user-friendly blockchain ecosystem on a global scale.
Jeremy Allaire, the CEO of Circle, remarks on the alliance's crucial role in bolstering stablecoin outreach, along with enhancing Web3 experiences for creative talents.
Allaire envisages this partnership as a transformative force for the support of creativity and innovation in today's digital epoch.
Expectations are set for the integration of bridged USDC on Soneium to pave the way for smooth, secure, and limitless transactions, thereby nurturing a worldwide economy predicated on decentralized frameworks. Adhering to Circle’s standard operational procedures, Soneium also retains the flexibility for prospective adaptation to direct USDC issuance.
This venture showcases Circle’s ongoing efforts to grow its footprint in the stablecoin arena. As the globally second-largest issuer of stablecoins, Circle’s USDC boasts a circulation of $35.7 billion, claiming a 21% share of the market. There has been a 47% uptick in the stablecoin’s supply since the onset of the year, despite a 36% reduction from its June 2022 peak of $56 billion.
The partnership arrives amidst a flurry of blockchain-related ventures by Sony. In early September, Samsung Next declared a pivotal investment in Startale Labs, the developer behind Sony’s L2 blockchain. Furthermore, Soneium has entered into agreements with leading blockchain entities such as Astar, Transak, Alchemy, Chainlink, Optimism, and The Graph.
In April 2024, Circle broadened its Web3 offerings by incorporating Solana, enhancing the integration avenues for enterprises.
Previously in February of the same year, Moonwell initiated cross-chain USDC lending across Ethereum ecosystems.
April 2024 also saw Circle incorporating smart contract capabilities for USDC to streamline blockchain operations for BlackRock BUIDL holders.
Circle divulged plans last month to roll out near-field communication (NFC) powered contactless USDC transactions for iPhone users, leveraging Apple's cutting-edge technology.
In January 2024, Circle introduced its stablecoin USDC on the Celo network, aiming to augment RWA utilities in emerging markets.
