Circle and Sony Join Forces to Revolutionize Web3 Creation

Circle, the issuer of the USDC stablecoin, and Sony Network Communications Labs, the blockchain arm of tech giant Sony, have announced a strategic collaboration. Their goal? To integrate USDC onto Soneium, Sony’s Ethereum layer-2 blockchain. This partnership aims to empower creators with enhanced Web3 experiences.

Bridging USDC to Soneium

According to a press release by Circle, the collaboration will establish bridged USDC as a primary token for value exchange on Soneium. They plan to leverage Circle’s Bridged USDC Standard, which allows for deploying a bridged form of USDC on Ethereum Virtual Machine (EVM)-compatible blockchains. This serves as a proxy for native USDC held on Ethereum.

Launched recently in August 2024, Soneium is a public layer-2 blockchain developed by Sony Network Communications Labs—a joint venture between Sony Group Corporation and Startale Labs. Designed as a versatile, general-purpose blockchain ecosystem, Soneium supports diverse needs across various industries and serves users globally.

Redefining Digital Entertainment

Jun Watanabe, Chairman of Sony Network Communications Labs, emphasized the collaboration’s potential to redefine the digital entertainment and finance sectors.

“This partnership aligns with our vision of creating a more interconnected and efficient digital ecosystem,” Watanabe shared.

Empowering Creators Through Web3

Circle CEO Jeremy Allaire highlighted the significance of the partnership in advancing stablecoin adoption and empowering creators.

Allaire stated that through the collaboration, they hope to “re-imagine how creativity and innovation are supported in the digital age.”

Standards and Future Upgrades

Integrating bridged USDC on Soneium is expected to enable seamless, secure, and borderless transactions. By following Circle’s standard implementation process, Soneium maintains the option for a future upgrade to native USDC issuance. This move fosters a global economy built on decentralized technologies.

This collaboration comes as Circle continues to expand its presence in the stablecoin market. As the world’s second-largest stablecoin issuer, Circle’s USDC has a circulating supply of $35.7 billion, representing a 21% market share. The stablecoin’s supply has increased by 47% since the beginning of the year, though it remains 36% below its peak of $56 billion in June 2022.

Sony’s Blockchain Initiatives

The partnership also follows recent developments in Sony’s blockchain efforts. In early September, Samsung Next, the investment arm of Samsung, announced a strategic investment in Startale Labs, Sony’s layer-2 blockchain developer. Additionally, Soneium has formed partnerships with other prominent blockchain companies, including Astar, Transak, Alchemy, Chainlink, Optimism, and The Graph.

Circle’s Ongoing Expansion

In April 2024, Circle expanded its Web3 services to Solana, enhancing USDC’s integration options for businesses. Earlier in February, Moonwell enabled cross-chain USDC lending throughout Ethereum ecosystems. In the same month, Circle introduced USDC smart contract support to facilitate blockchain transactions for BlackRock BUIDL holders. Last month, Circle announced plans to introduce NFC contactless USDC transactions on iPhones, utilizing advanced Apple technologies. In January 2024, Circle issued its stablecoin USDC on the Celo network to improve RWA utilities in developing regions.

Circle and Sony’s Web3 Collaboration marks a significant step toward empowering creators with enhanced Web3 experiences. By integrating USDC on Soneium, they are paving the way for a more interconnected and efficient digital ecosystem. This partnership not only advances stablecoin adoption but also reimagines how creativity and innovation flourish in the digital age.