The SUI Foundation announced support for native USD Coin (USDC) on the Sui Network (SUI) blockchain.
According to an Oct. 9 press release, NAVI—Sui Network’s top decentralized finance (DeFi) and liquidity protocol—has already announced plans to integrate USD Coin on the day it launches on the SUI blockchain. The network will see $120 million worth of USDC be deployed on its blockchain, making it the third in order of USDC supply.
The introduction of native USDC enhances Sui Protocol’s DeFi ecosystem with an easily-accessible reliable stablecoin. NAVI will also feature an in-application migration feature for bridged USDC and a native USDC liquidity pool as well as flash loans.
The SUI Foundation hopes that native USD Coin’s introduction will enhance liquidity on the platform and simplify transactions. Users will be able to access USDC directly and through the adoption of the cross-chain transfer protocol users can also move USD Coin across blockchains without the delays that bridge withdrawals would usually involve.
Native USDC is advantageous over its wrapped counterpart wUSDC since it reduces attack surface and lets the user directly hold a stablecoin that is redeemable 1:1 for United States dollars. SUI Foundation’s announcement highlights that this adds a further layer of trust for both users and developers on the blockchain who can now deal with USDC issuer Circle directly.
NAVI will also soon unveil its own migration plan as it looks for ways to incentivize a rapid transition from wUSDC to native USD Coin tokens. DeFiLlama data shows that NAVI holds over $366 million worth of assets as total value-locked with a token market cap just under $36 million.
The broader Sui Network ecosystem is also a DeFi powerhouse. DeFiLlama data shows that Sui is the sixth blockchain ranked by decentralized exchange (DEX) volume with a weekly gain of nearly 58% and a 24 hours volume of $183.5 million.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.