Stablecoin issuer Circle is expanding its native issuance of USD Coin (USDC) and deploying its Cross-Chain Transfer Protocol on the layer-1 blockchain Sui.
In a Sept. 17 X post, Evan Cheng, co-founder and CEO of Mysten Labs, revealed that his firm’s blockchain—Sui—has partnered with Circle to bring USDC to the network.
Cheng did not provide additional information on the partnership. However, market observers noted that the move would boost liquidity in Sui’s fast-rising ecosystem and further attract more users to the network.
Launched in 2023, Sui has quickly gained attention within the crypto space for its simplicity and recent high-flying moves, which include a partnership with automaker DeLorean to bring innovation to the automotive industry and usher the brand into the digital era.
Furthermore, crypto asset management firm Grayscale recently opened its Sui Trust for qualified investors.
USDC’s growing influence
USDC is currently the second-largest stablecoin, with a circulating supply exceeding $35 billion. According to Circle, USDC is supported on 15 blockchain networks, including Ethereum, Algorand, Arbitrum, Avalanche, Polkadot, Base, and Polygon.
Circle promotes USDC as a compliant digital asset offering robust user protections. The company recently announced plans to relocate its headquarters to New York City’s World Trade Center.
Despite its success, Circle has faced criticism. Blockchain investigator ZachXBT recently called out the company for delays in blacklisting a wallet tied to North Korea’s Lazarus Group.
In a Sept. 17 post on X, ZachXBT highlighted instances where Circle failed to safeguard the crypto ecosystem. He criticized the firm’s slow response in preventing malicious actors and its reluctance to assist users who accidentally transferred USDC to contract addresses due to poor user interface design.
ZachXBT stated:
“A large number of users have accidentally transferred USDC to the contract address on various chains due to bad UX in the ecosystem. While yes, it is the user’s fault, Circle does have the ability in the contract to transfer the funds back to the rightful owner, yet unlike their competitors, it will not help you.”