Important points
- Circle introduces Paymaster to allow users to pay blockchain gas fees in USDC, eliminating the need for native tokens such as ETH.
- Circle plans to expand Paymaster to other networks such as Ethereum, Polygon PoS, and Solana while developing cross-chain capabilities.
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Circle has introduced Paymaster, a new product that allows users to pay blockchain gas fees in USDC, eliminating the need for native tokens such as ETH.
The service is currently available on Arbitrum and Base, but we plan to expand support to Ethereum, PoS, and Solana.
Future developments will focus on enabling cross-chain functionality that allows users to pay gas fees across multiple blockchains using a single USDC balance.
USDC is the second largest stablecoin with a market cap of $51 billion, behind Tether's USDT, which has a market cap of $138 billion. Circle expects this release to enable more users to adopt USDC.
Traditionally, blockchain transactions require gas fees to be paid in native tokens, creating challenges for users who are new to managing multiple assets or who lack sufficient balance.
Paymaster simplifies this process by taking USDC for gas fees, paying into the network with native tokens, and delivering the USDC to the recipient. Circle's automatic rebalancing allows the system to maintain liquidity for timely transaction processing.
Developers can integrate permissionless solutions with ERC-4337 compatible wallets and allow users to pay for gas with USDC. Circle has also waived the 10% gas surcharge until June 30, 2025, making it easier for users to adopt the service.
The product complements Circle's existing gas station feature, which allows developers to sponsor gas fares through credit card payments.
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