Circle has announced that Sonic, a so-called “high-performance” EVM Layer-1 blockchain, will transition from the Bridged USDC Standard to native USDC while integrating support for Circle’s Cross-Chain Transfer Protocol V2 (CCTP V2).
This upgrade, set to commence with a bridging pause on May 6, 2025, and complete within approximately a week, aims to enhance liquidity, security, and interoperability for Sonic’s ecosystem.
With over $480 million in bridged USDC and nearly $1 billion in Total Value Locked (TVL) across more than 125 applications, Sonic is poised to solidify its position as a hub for decentralized finance (DeFi).
Launched in December 2024, Sonic has emerged as the fastest-growing blockchain utilizing Bridged USDC Standard.
Designed to scale DeFi applications, Sonic reportedly achieves sub-second transaction finality and the potential to process over 400,000 transactions per second.
Its infrastructure supports a range of use cases, including decentralized exchanges, cross-chain liquidity solutions, high-frequency trading, derivatives trading, payments, and NFT marketplaces.
The blockchain’s meteoric rise, underscored by its $1 billion TVL, reflects its appeal to developers and users seeking efficient, scalable, and cost-effective solutions in the DeFi space.
The shift to native USDC marks a significant milestone for Sonic.
Unlike bridged USDC (USDC.e), which relies on third-party bridges and can lead to liquidity fragmentation, native USDC is issued directly by Circle, ensuring a fully reserved, dollar-backed stablecoin redeemable 1:1 for US dollars.
This transition eliminates the complexities and risks associated with wrapped assets, offering developers and users a reliable, and widely accepted form of USDC.
Importantly, the upgrade requires no action from developers or users—existing USDC.e tokens will automatically convert to native USDC, maintaining functionality for trading and bridging through third-party tools during the transition.
Complementing this upgrade is the integration of CCTP V2, Circle’s advanced protocol for cross-chain USDC transfers.
CCTP V2 employs a burn-and-mint model, enabling native USDC to be burned on one blockchain and instantly minted on another.
This process reportedly ensures fast, secure, and capital-efficient transfers without the need for wrapped assets or liquidity pools, which often introduce delays and risks.
By joining Avalanche, Base, Ethereum, and Linea in CCTP V2’s interoperable network, Sonic enhances its connectivity, allowing developers to create sophisticated cross-chain applications with improved smart contract composability and faster-than-finality settlement.
Circle’s takeover of Sonic’s bridged USDC contract during the transition facilitates the rollout of native USDC and integrates Circle Mint services for institutional access.
This move is expected to unlock new use cases, enhance smart contract functionality, and boost liquidity across Sonic’s ecosystem.
For developers, the upgrade simplifies integration, while users benefit from a consistent experience free from liquidity mismatches.
As Sonic continues to attract web3 and blockchain builders and traders with its “high throughput” and low-cost transactions, the adoption of native USDC and CCTP V2 positions it as a cornerstone of the evolving DeFi landscape.