Circle, the issuer of USD Coin (USDC), is set to expand its stablecoin to the Sui network, a layer-1 (L1) blockchain platform. This integration will utilize the Cross-Chain Transfer Protocol (CCTP), which facilitates seamless transfers of USDC between blockchains through native minting and burning mechanisms.
The announcement was made by Circle CEO Jeremy Allaire at an event in Singapore, marking a significant step in USDC’s expansion across over 15 blockchain networks.
Boosting Sui’s Interoperability and Security
The integration of USDC into the Sui network is expected to enhance its interoperability and security, providing developers and users with greater functionality. Sui, launched in 2023, is an L1 blockchain designed for Web3 applications, aiming to simplify decentralized application development with its parallel transaction execution capabilities. The network is built using the Move programming language, which supports advanced scalability and security for decentralized finance (DeFi) solutions.
Adeniyi Abiodun, co-founder and chief product officer of Mysten Labs, the team behind Sui, commented, “The availability of USDC as a native asset on Sui marks another important milestone in the maturation of the Sui ecosystem. Combined with USDC’s world-class technology, the native USDC provides the Sui community with seamless access to one of the world’s most trusted digital currencies and solidifies Sui’s position as an industry leader.”
Circle’s Strategic Partnerships and Headquarters Move
The addition of USDC to Sui follows Circle’s recent partnership with Sony Block Solutions Labs, the blockchain division of Sony. This collaboration aims to integrate USDC on Soneium, Sony’s Ethereum layer-2 blockchain, positioning bridged USDC as a primary token for value exchange on the platform, leveraging Circle’s Bridged USDC Standard.
In a strategic move, Circle also announced plans to relocate its global headquarters to New York City. The new office will be situated at the iconic One World Trade Center in Lower Manhattan, with the move scheduled for early 2025. This decision aligns with Circle’s preparations for its upcoming Initial Public Offering (IPO), for which the company filed in January. The IPO will proceed following the U.S. Securities and Exchange Commission’s (SEC) review of Circle’s submission.
Scrutiny Over Security Measures
Meanwhile, Circle is facing criticism from blockchain investigator ZachXBT regarding its handling of funds associated with the North Korean hacking group Lazarus. ZachXBT alleges that Circle took over four months longer than other major stablecoin issuers to blacklist addresses linked to the group, which has been involved in several high-profile cryptocurrency thefts.
In a recent post on X, ZachXBT stated, “Not once have you ever blacklisted after a DeFi exploit/hack when there was ample time while you continue to profit off the transactions. You took 4.5 months longer than every other major issuer to blacklist Lazarus Group funds.”
