Bitcoin
BTC
$
00000.00
-0.00%
Ethereum
ETH
$
00000.00
-0.00%
Solana
SOL
$
00000.00
-0.00%
XRP
XRP
$
00000.00
-0.00%
Dogecoin
DOGE
$
00000.00
-0.00%
ChainLink
LINK
$
00000.00
-0.00%
Binance Coin
BNB
$
00000.00
-0.00%
Cardano
ADA
$
00000.00
-0.00%
Litecoin
LTC
$
00000.00
-0.00%
Ordinals
ORDI
$
00000.00
-0.00%
Polygon
MATIC
$
00000.00
-0.00%
Optimism
OP
$
00000.00
-0.00%
Arbitrum
ARB
$
00000.00
-0.00%
Polkadot
DOT
$
00000.00
-0.00%
Avalanche
AVAX
$
00000.00
-0.00%
Sui
SUI
$
00000.00
-0.00%
Ethereum Classic
ETC
$
00000.00
-0.00%
FileCoin
FIL
$
00000.00
-0.00%
Celestia 
TIA
$
00000.00
-0.00%
Injective
INJ
$
00000.00
-0.00%

Key Takeaway

USD Coin (USDC) is a stablecoin pegged to the US dollar, designed for direct 1:1 redemption and seamless transactions across multiple blockchains. USDC.e is a bridged version that allows USDC transfers on networks unable to support its native form. However, this version carries extra risks, like security issues and limited liquidity. 

Knowing the differences and ideal use cases for USDC and USDC.e, including how to swap them on platforms like Uniswap or Jupiter, is essential for managing these assets effectively and reducing possible risks.

This review and rating adhere to our editorial policy and the the research methodology of StacksOnChain analysts, guaranteeing the accuracy and reliability of our reports.

Rating

What is USDC.e and USDC?

USD Coin (USDC) is a stablecoin backed by the US dollar, designed to offer stability and reliability. Each token is pegged 1:1 to the US dollar, maintained through a combination of cash reserves and short-term US Treasury bonds, which are audited monthly. This ensures that users can always redeem their USDC for an equivalent amount of USD. It was launched in 2018 by the Centre Consortium, a collaborative effort between Circle and Coinbase.

USDC.e represents a bridged form of USDC transferred across blockchain networks using interoperability protocols. While it maintains the value equivalence to USDC and is backed by the same reserves, USDC.e does not receive direct support from Circle’s core services. This variant cannot be utilized within Circle’s native platforms or redeemed through Circle without converting it back to the original USDC on its initial blockchain.

USDC.e and Bridged USDC Risks

Using USDC.e and Bridged USDC introduces risks, including the security of bridging technology. If this technology is compromised, it could lead to funds being lost or unauthorized tokens being created. It is important to note that many of these bridged USDC contracts are not managed by Circle but by third parties such as the Avalanche Foundation or Arbitrum Foundation.

Because bridged USDC, such as USDC.e, is not directly supported by Circle, it often faces liquidity constraints and limited acceptance, making it harder for users to convert these tokens back to native USDC or fiat easily. There's also the risk of ecosystem fragmentation. Different forms of Bridged USDC may not work together without specific bridges, leading to a segmented market.

USDC.e and Bridged USDC Risks

How to Swap USDC.e for USDC

‍Swapping USDC.e for USDC varies depending on the blockchain you are using. If you are on the Ethereum network or its Layer 2 solutions, Uniswap is your best bet. Known for its deep liquidity and efficient asset conversions, Uniswap allows you to easily swap between USDC.e and USDC. 

For those on Solana, Jupiter is the ideal choice, offering excellent liquidity and enabling quick transactions. Using Jupiter, you can easily convert USDC.e to USDC, benefiting from the platform’s optimized trade routing to secure the best exchange rates.

Swap USDC.e for USDC

Closing Thoughts

USDC offers a stable and directly redeemable currency supported by Circle, efficiently operating across multiple blockchains. USDC.e, however, is a bridged version specifically designed for blockchains that cannot support native USDC and is not backed by Circle. It facilitates the transfer of stablecoin value across diverse networks but introduces risks such as security vulnerabilities and liquidity challenges.

Author

Nick Ng is a skilled analyst at StacksOnChain with expertise in both cryptocurrencies and traditional finance. His research offer valuable insights into market trends and investment opportunities for readers.

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