Circle and Sony partner to bring USDC to Soneium

Source: Crypto Briefing

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Circle, issuer of the USDC stablecoin, and Sony Block Solutions Labs, the blockchain arm of tech giant Sony, have announced a strategic collaboration to integrate and bring USDC on Soneium, Sony’s Ethereum layer-2 blockchain.

According to the press release by Circle, the partnership aims to establish bridged USDC as a primary token for value exchange on Soneium, leveraging Circle’s Bridged USDC Standard. This specification allows for deploying a bridged form of USDC on Ethereum Virtual Machine (EVM)-compatible blockchains, serving as a proxy for native USDC held on Ethereum.

Launched just recently in August 2024, Soneium is a public layer-2 blockchain developed by Sony Block Solutions Labs, a joint venture between Sony Group Corporation and Startale Labs. The platform is designed as a versatile, general-purpose blockchain ecosystem to support diverse needs across various verticals and serve users globally.

Jun Watanabe, Chairman of Sony Block Solutions Labs, emphasized the collaboration’s potential to redefine digital entertainment and finance sectors.

“This partnership aligns with our vision of creating a more interconnected and efficient digital ecosystem,” Watanabe shares.

Circle CEO Jeremy Allaire says that the partnership is significant in that it advances the company’s stablecoin adoption efforts, while also empowering creators through Web3 experiences.

Allaire claims that through the partnership, they hope to “re-imagine how creativity and innovation are supported in the digital age.”

Standards and future upgrades

The integration of bridged USDC on Soneium is expected to enable seamless, secure, and borderless transactions, fostering a global economy built on decentralized technologies. By following Circle’s standard implementation process, Soneium maintains the option for a future upgrade to native USDC issuance.

This collaboration comes as Circle continues to expand its presence in the stablecoin market. As the world’s second-largest stablecoin issuer, Circle’s USDC has a circulating supply of $35.7 billion, representing a 21% market share. The stablecoin’s supply has increased by 47% since the beginning of the year, though it remains 36% below its peak of $56 billion in June 2022.

The partnership also follows recent developments in Sony’s blockchain initiatives. In early September, Samsung Next, the investment arm of Samsung, announced a strategic investment in Startale Labs, Sony’s L2 blockchain developer. Additionally, Soneium has formed partnerships with other prominent blockchain companies, including Astar, Transak, Alchemy, Chainlink, Optimism, and The Graph.

In April 2024, Circle expanded its Web3 services to Solana, enhancing USDC’s integration options for businesses.

Earlier this year in February, Moonwell enabled cross-chain USDC lending throughout Ethereum ecosystems.

Earlier in April 2024, Circle introduced USDC smart contract support to facilitate blockchain transactions for BlackRock BUIDL holders.

Last month, Circle announced plans to introduce NFC contactless USDC transactions on iPhones, utilizing advanced Apple technologies.

In January 2024, Circle issued its stablecoin USDC on the Celo network to improve RWA utilities in developing regions.

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Author: Vince Dioquino