On January 24 of this year, Arbitrum announced custom gas token support for Arbitrum Orbit chains, allowing Orbit chains to charge gas fees using an ERC20 token of their choice, including their own tokens.

Bridged USDC is now supported as a custom gas token on Arbitrum Orbit chains! This milestone marks a significant enhancement in the way transactions are conducted within the Arbitrum ecosystem, providing users with increased convenience, price stability, and accessibility.

Your chain. Your rules. 

Builders will benefit from even more ways to customize their Orbit chains, including: quickly setup via Orbit RaaS providers as a standard configuration option and the opportunity to apply for USDC Grant Program from Circle.

What Does This Mean for Users?

Easier Payments

With bridged USDC as a custom gas token, users can now pay for transaction fees using one of the most popular and widely accepted stablecoins. This eliminates the need to hold multiple types of tokens solely for the purpose of covering gas fees, streamlining the transaction process and making it more user-friendly.

Enhanced Stability, Less Gas Price Volatility

As a digital dollar, USDC offers price stability, pegged 1:1 to the US Dollar. This stability is crucial for users and developers alike, providing a predictable and reliable medium for covering gas fees. By supporting bridged USDC as a gas token there is no more worrying about Eth price volatility impacting your transaction costs when building Orbit Chains.

Increased Liquidity and Accessibility

With over $1.6B in native USDC currently on Arbitrum, supporting bridged USDC as a gas token lowers the barrier to entry for new projects looking to build on Arbitrum Orbit chains, as well as for their users. USDC is already a staple in the crypto community, and its integration as a gas token makes it easier for users to engage with the Arbitrum ecosystem without needing to convert their assets.

What Does this Mean for Builders?

Quick Set Up for Builders via Orbit Raas Providers

Developers can get started with @Alt_Layer, @Calderaxyz, @Conduitxyz, and @GelatoNetwork today, with added support from @Ankr and @AlchemyPlatform coming soon.

Apply for USDC +  Orbit Development Grants 

The USDC Grant Program at Circle will consider projects that are leveraging bridged USDC as a gas token on Orbit chains. If you are building an Orbit chain, apply here: 

https://www.circle.com/en/usdc-grant-program

Looking Ahead

This integration is just one of several initiatives that Arbitrum is working on with Circle.  Stay tuned for more updates and announcements in the future.