Circle Introduces Paymaster for USDC Fee Payments on Arbitrum and Base
Circle has launched a product called Paymaster, allowing users to pay transaction fees on Arbitrum and Base using USDC instead of the native cryptocurrency, ETH. This innovation aims to reduce friction for users lacking native tokens and simplify regulatory concerns for institutions.
- Paymaster charges a 10% surcharge on gas fees paid with USDC, but this fee is waived until June 30, 2025.
- The process involves three steps: user initiates a transaction, Paymaster receives USDC, and validators are paid in the native token.
- Compatible with any ERC-4337 wallet, making integration straightforward for developers.
Circle plans to expand Paymaster’s functionality to additional blockchains, including Ethereum, Solana, and Polygon PoS. Future updates will enhance cross-chain gas payment capabilities using Circle's Cross-Chain Transfer Protocol (CCTP).
Circle is also growing its presence in the crypto market through acquisitions and partnerships. USDC is now available in over 180 countries, with a 78% year-over-year growth in circulation for 2024, and currently holds a market cap of $51.66 billion.