Circle Partners with Sony to Launch USDC on Soneium Blockchain

Highlights:

• Circle and Sony are integrating USDC as a key token on Soneium.
• Bridged USDC will enable flexible transactions, maintaining value while enhancing Web3 creativity.
• Circle’s USDC supply grows while the Sony partnership advances Web3 innovation.

Stablecoin issuer and fintech firm Circle has partnered with Sony Block Solutions Labs to make USD Coin (USDC) a primary transaction token on the firm’s layer-2 blockchain, Soneium. This collaboration will enable users and creators to conduct secure, borderless transactions, aiming to build a more connected and decentralized global economy, Circle said on Monday.

Bridged USDC, a version of USDC moved from the Ethereum blockchain to Soneium, will be used for transactions. The process locks USDC on Ethereum and mints an equivalent amount on the new blockchain, providing users with flexibility while maintaining value backed by the original deposit. “This marks a significant milestone to set the stage for a new era of creativity in the Web3 space,” the firm stated.

We’re excited to announce our collaboration with Sony Block Solutions Labs to bring bridged USDC on Soneium via our Bridged USDC Standard! This marks a significant milestone to set the stage for a new era of creativity in the Web3 space.

Read more about the collaboration here:… pic.twitter.com/0IRxrXhf5P

— Circle (@circle) September 16, 2024

This collaboration arrives as Circle expands its footprint in the stablecoin market. As the world’s second-largest stablecoin issuer, Circle’s USDC has a circulating supply of $35.7 billion, accounting for 21% of the market. While the stablecoin’s supply has grown by 47% since the start of the year, it remains 36% below its peak of $56 billion reached in June 2022.

Soneium is a public Ethereum (ETH) layer-2 blockchain developed by Sony Block Solutions Labs and launched in August 2024. Sony Block Solutions Labs is a joint venture between Sony Group Corporation and Startale Labs, created to develop a new network infrastructure utilizing distributed ledger technology.

Jun Watanabe, Chairman at Sony Block Solutions Lab, said:

“This collaboration aligns ideally with our vision of creating a more interconnected and efficient digital ecosystem. We are excited about the potential this partnership unlocks, not just for technological advancement, but for delivering tangible benefits to Soneium and users worldwide.” 

Soneium Mainnet Scheduled for 2025

Soneium, currently in its testing phase, plans to launch its mainnet next year. The platform seeks to transform content creation, distribution, and fan engagement by incorporating blockchain technology into Sony’s entertainment services. This could encompass NFTs, digital rights management, and other innovations. 

For developers, Soneium will provide tools to build decentralized apps (dApps) using Sony’s infrastructure, unlocking new opportunities for decentralized services connected to Sony’s products. The Circle and Sony partnership marks a major step towards a decentralized digital future, aiming to deliver global benefits.

Soneium Minato Testnet and #Soneium Spark Incubation details are here!#Sony Block Solutions Labs launches this Ethereum layer-2 solution to empower builders and drive Web3 adoption. pic.twitter.com/UYRgzXJPxn

— Soneium 💿 (@soneium) August 28, 2024

Sony’s Blockchain Moves and Circle’s USDC Recent Expansions

The partnership also builds on recent advancements in Sony’s blockchain initiatives. In early September, Samsung Next, Samsung’s investment arm, revealed a strategic investment in Startale Labs, Sony’s layer-2 blockchain developer. Moreover, Soneium has established partnerships with other leading blockchain companies, including Transak, Alchemy, Astar, Chainlink, Optimism, and The Graph. 

In January 2024, Circle launched its stablecoin USDC on the Celo network to enhance real-world asset utilities in developing regions. In April, Circle extended its Web3 services to Solana, broadening USDC’s integration options in business applications. Moreover, in the same month, Circle launched USDC smart contract support to enhance blockchain transactions for BlackRock BUIDL holders. Last month, Circle revealed plans to enable NFC contactless USDC transactions on iPhones, leveraging advanced Apple technologies.