What is Axelar Wrapped USDC (axlUSDC)?

TLDR Axelar Wrapped USDC (axlUSDC) is a cross-chain stablecoin that bridges USDC liquidity across blockchains, enabling seamless asset transfers and decentralized applications (dApps) to operate multichain.

1. Cross-chain stablecoin – Maintains USDC’s 1:1 dollar peg while enabling transfers between 50+ blockchains via Axelar’s decentralized network.
2. Interchain infrastructure – Built on BNB Smart Chain (BEP20) and secured by Axelar’s proof-of-stake validators, ensuring trustless cross-chain communication.
3. DeFi interoperability tool – Powers multichain dApps, portfolio rebalancing, and governance systems like Uniswap by unifying liquidity across ecosystems.

Deep Dive

1. Cross-Chain Stablecoin

axlUSDC is a wrapped version of Circle’s USDC, meaning each token is backed 1:1 by USDC reserves. Unlike native USDC (limited to Ethereum and a few chains), axlUSDC uses Axelar’s General Message Passing protocol to move across 50+ blockchains (Axelar). This lets users transact with dollar stability on networks like BNB Chain, Polygon, and Cosmos without centralized bridges.

2. Interchain Infrastructure

Axelar secures axlUSDC through a decentralized network of validators that verify cross-chain transactions via proof-of-stake consensus. When USDC is sent to another chain, validators lock the original tokens and mint axlUSDC on the destination chain. This process eliminates reliance on centralized custodians, reducing counterparty risk.

3. DeFi Interoperability Tool

axlUSDC acts as a liquidity backbone for multichain dApps. For example, a decentralized exchange on Avalanche can use axlUSDC to settle trades involving assets from Ethereum or Polkadot. It also simplifies cross-chain collateralization in lending protocols and enables unified governance voting across platforms.

Conclusion

Axelar Wrapped USDC is a programmable dollar designed to unify fragmented blockchain ecosystems, combining stable value with Axelar’s cross-chain security. As Web3 expands, will Axelar’s infrastructure become the standard for frictionless multichain interactions?