Circle to Launch Dollar-Denominated Token on Sui Blockchain

Circle, the issuer of the second-largest stablecoin USDC, plans to launch a dollar-denominated token on the Layer 1 blockchain Sui as early as next week, according to Circle co-founder and CEO Jeremy Allaire on Tuesday. This announcement comes alongside several initiatives for the stablecoin provider, including a partnership with MoviePass that will enable subscribers to pay with crypto and news of USDC’s availability in Brazil and Mexico.

This marks Circle’s fifteenth blockchain integration since the inception of USDC through a collaboration with Coinbase in 2018. The stablecoin currently ranks as the sixth-largest cryptocurrency, boasting a market capitalization and circulating supply of $35 billion, according to The Block’s price page.

Following the announcement, Sui’s native token SUI saw an increase of over 10% and is currently valued at $1.15.

Adeniyi Abiodun, Chief Product Officer of Mysten Labs, stated, “The availability of USDC as a native asset on Sui marks another important milestone in the maturation of the Sui ecosystem.” He emphasized that the launch would enhance the network’s cross- and intra-chain functionalities.

Launched in 2023, Sui is designed for running decentralized applications and is based on technology developed during Facebook’s (now Meta) attempt to create its failed Libra (later Diem) stablecoin, including a programming language called Move, which is also utilized by rival network Aptos.

Circle intends to deploy USDC on Sui using its Cross-Chain Transfer Protocol (CCTP), an on-chain platform designed for minting, burning, and transferring tokens across various blockchains.

“Apps built on CCTP can essentially teleport USDC from one blockchain to another, providing users with a highly secure and capital-efficient way to transact in a multi-chain world,” Circle stated in an announcement.

Allaire mentioned that the USDC Sui testnet would go live on Tuesday, although data platform Suiscan did not show a contract address at the time of this publication.

The Circle Reserve Fund, which is SEC-registered and holds a portfolio of U.S. Treasurys, overnight repurchase agreements, and cash, is managed by BlackRock and custodied at The Bank of New York Mellon, with attestations provided by Grant Thornton.

Additionally, Circle disclosed plans to expand USDC on the Ethereum Layer 2, Soneium, a joint venture of Sony and Singapore-based Startale Labs.