USDC vs USDC.e, what is the difference?

USDC and USDC.e look almost the same in a wallet, but they are different tokens. Native USDC is issued directly by Circle. USDC.e is a bridged version, created by a third-party bridge, that represents USDC locked on another blockchain, usually Ethereum. Both aim to be worth one dollar, but they carry different risks. The basics of USDC itself are in is USDC the same as USD.

What is USDC.e?

USDC.com says USDC.e is native USDC from Ethereum that has been moved to another ecosystem. A bridge locks the original USDC in a smart contract on Ethereum and mints a matching token on the other chain. This is the same model used by any wrapped token.

The key line on Circle's USDC site is that USDC.e is not issued by Circle. Its value depends on the bridge holding the locked USDC safely. USDC.com points to Chainalysis data showing bridges accounted for most crypto exploits in 2022. The general mechanics are in what is a crypto bridge.

What is the difference between bridged USDC vs native USDC?

• Issuer. Native USDC comes from Circle. USDC.e comes from a bridge or crosschain platform.
• Redemption. Native USDC is redeemable one-for-one for dollars. USDC.com says USDC.e has to be swapped back to USDC first.
• Risk. USDC.e adds the risk that the bridge is hacked or fails, on top of the risks of USDC.
• Support. USDC.com notes that wallets and apps do not always support bridged versions, which can lead to failed or stuck transfers.

To tell them apart, check the token's name and contract address against the native addresses Circle publishes. Naming is not fully standardized.

What is USDC.e on Arbitrum and Polygon?

On Arbitrum, the Arbitrum Foundation announced that Circle would launch native USDC on June 8, 2023. Before that, the existing token bridged from Ethereum was renamed Bridged USDC, symbol USDC.e, on block explorers, with its own contract address. Arbitrum said native USDC would ultimately replace it.

On Polygon PoS, Circle announced native USDC on October 10, 2023, and listed separate addresses for native USDC and USDC.e. Circle Mint stopped supporting USDC.e deposits and withdrawals after November 10 that year.

How do you convert USDC.e to native USDC?

USDC.com says USDC.e can be swapped to native USDC through decentralized exchanges or third-party bridges, sometimes with extra fees. Circle's own Cross-Chain Transfer Protocol moves only native USDC, not USDC.e.

Some newer chains take a different route. Under Circle's Bridged USDC Standard, published in November 2023, a chain launches bridged USDC using code that Circle can later take over and upgrade to native USDC in place. Addresses and balances stay the same, and Circle burns the USDC locked in the bridge. Circle says it is not obliged to upgrade any chain.

Stablecoins can lose their peg, and a bridged version adds the risk of the bridge itself.