Stablecoin and digital assets firm Circle has announced major updates to its Paymaster service, aligning with the recent Ethereum Pectra upgrade.
On May 7, 2025, Jeremy Allaire, CEO of Circle, shared on X that Circle Paymaster now supports nearly any Web3 wallet across seven blockchain networks, marking a pivotal moment for stablecoin adoption and decentralized application (dApp) accessibility.
This development, coupled with Circle’s acquisition of the Gateway team, underscores the company’s commitment to streamlining blockchain transactions and fostering growth in emerging markets.
Circle Paymaster, a service designed to simplify blockchain transactions by allowing users to pay gas fees in USDC, has undergone a transformative expansion.
According to Circle’s blog post, the service now supports Externally Owned Accounts (EOAs) through the Ethereum Pectra upgrade, which implements EIP-7702.
Previously limited to smart contract accounts (SCAs) compatible with ERC-4337, Paymaster’s new compatibility with EOAs broadens its reach, enabling a wider range of wallets to transact without the need for native tokens like ETH.
This update eliminates a significant friction point for users, as they can now perform actions such as buying NFTs, executing swaps, or making USDC payments using only their USDC balance, without worrying about gas tokens.
The expansion also extends Paymaster’s footprint to seven blockchain networks: Avalanche (AVAX), Ethereum, Optimism, Polygon, Unichain, Arbitrum, and Base.
This cross-chain functionality aims to streamline the user experience by reducing the complexity of managing native tokens across multiple chains.
Circle’s blog highlights that Paymaster now integrates with the Cross-Chain Transfer Protocol (CCTP), enabling users to pay gas fees on one blockchain using a USDC balance held on another.
This feature is a notable one for stablecoin payments, as it minimizes barriers for users and developers, fostering a more seamless interaction with dApps.
Allaire emphasized the importance of this update in his X post, likening the user experience to streaming on Netflix.
With Paymaster, developers can “eat the fees” themselves, allowing users to engage with dApps without the burden of gas costs.
This abstraction of crypto infrastructure keeps the focus on app utility, paving the way for broader Web3 adoption.
The community response on X has been positive, with users like Sylora Rae calling it “a beautiful step forward for real Web3 adoption” and Navigate noting that it makes blockchain “as easy as streaming Netflix.”
However, this innovation raises questions about the role of native tokens like ETH.
As Luka.eth pointed out in a reply to Allaire, “Doesn’t this reduce the need for ETH the token?”
While Paymaster simplifies transactions, it charges a 10% fee on the gas cost for each transaction paid in USDC, which may balance economic incentives for blockchain networks.
Still, the shift toward stablecoin-based gas payments could reshape the utility of native tokens in the long term.
Adding to these advancements, Circle recently welcomed the Gateway team, as announced in a separate blog post.
Gateway, known for its expertise in emerging markets, brings considerable experience to Circle’s ecosystem.
This acquisition aligns with Circle’s mission to expand its global reach, particularly in regions where stablecoins like USDC can provide financial stability and access.
The Gateway team’s integration into Circle’s operations is expected to enhance partnerships and drive innovation, further supporting initiatives like Paymaster.
Together, these updates position Circle as a key player in blockchain usability.
By supporting EOAs, expanding to seven blockchains, and leveraging the Gateway team’s expertise, Circle is focused on making Web3 more accessible and user-friendly.
As stablecoins continue to bridge traditional finance and decentralized ecosystems, Circle Paymaster’s latest enhancements are a significant step toward a frictionless financial ecosystem.