Understanding Bridged vs Native USDC

In Rainbow, you might have noticed different labels next to your USDC holdings—some say (Bridged), while others appear as plain USDC.

What exactly do these labels mean, and how do they impact your experience?

In this article, we'll delve into the distinctions between bridged and native USDC on various networks, show you how to identify them within Rainbow, and provide a few things to know as as you’re using USDC.

Bridged vs. Native USDC: What are the differences?

In the early days of USDC, to use USDC on other networks, bridged USDC was the norm. This form of USDC originated from tokens issued by Circle on the Ethereum blockchain and was subsequently transferred or "bridged" to other networks.

Users could interact with USDC on these networks, but it was fundamentally tethered to its Ethereum origins.

However, fast forward to today, and Circle has directly issued native USDC on multiple networks. Unlike bridged USDC, native USDC originates directly from Circle on a specific blockchain, eliminating the need for bridging from Ethereum.

Identifying USDC Types in Rainbow

Rainbow has made it easy for users to differentiate between bridged and native USDC. When you view your USDC holdings within the wallet, you'll notice distinct labels:

Bridged USDC: This type of USDC will always bear the label (Bridged) next to it, ensuring clarity in your portfolio.

Native USDC: Native USDC, issued directly by Circle on the respective network, will appear simply as USDC.

User Considerations for USDC

Understanding the nature of USDC is crucial for seamless transactions and interactions. A few things to remember:

1. Dapp and Exchange Compatibility: Before engaging with decentralized applications (dapps) or cryptocurrency exchanges, verify which type of USDC they support. Some platforms may exclusively accommodate only one type of USDC.
2. Redemptions from Circle: If you plan to redeem USDC from Circle, be aware that Circle generally supports only native USDC for withdrawals. Ensure your holdings align with Circle's redemption criteria to avoid any inconveniences.

Bridged USDC Token Symbols & Addresses

Native USDC Token Symbols & Addresses

In the ever-evolving landscape of crypto, ensuring you can distinguish between bridged and native USDC will ensure a seamless and secure experience. Rainbow is proud to be your reliable guide, providing transparent labels for your USDC holdings.