Circle Ventures backs edgeX to bring native USDC and CCTP to EDGE Chain
Circle Ventures has made a strategic, undisclosed investment in edgeX and will enable native USDC and Circle’s Cross-Chain Transfer Protocol (CCTP) on edgeX’s dedicated Layer 3, the EDGE Chain. The integration aims to replace wrapped-asset bridges with permissionless burn-and-mint USDC transfers via CCTP, making USDC a primary collateral and settlement asset for margin trading, liquidations and high-frequency perpetual markets on edgeX. edgeX offers a decentralized order book, on-chain risk engine and low-latency Layer 3 execution environment focused on capital-efficient perpetuals; the platform reports hundreds of thousands of transacting addresses, billions in daily trading volume, rising open interest and notable mobile adoption in Asia. edgeX is also expanding into RWA-linked perpetuals (stocks and commodities), spot trading and prediction markets while continuing development of the EDGE Chain. Market implications include improved capital efficiency, lower bridge risk for traders, and a potential competitive boost versus other perpetual DEXs. The timeline for full USDC/CCTP integration is unspecified; success metrics to watch are native USDC liquidity depth, CCTP cross-chain volume, trading volume and open interest on edgeX. (Source material originated as a sponsored press release.)
Bullish
The news is likely bullish for USDC because native integration of USDC via Circle’s CCTP on a high-performance perpetual DEX reduces bridge risk and increases capital efficiency, both of which raise demand for USDC as collateral and settlement currency. Short-term effects: announcements and partnership flows may boost on-chain USDC demand and volumes on edgeX as traders and market makers prepare for integration, creating positive sentiment. Liquidity providers and arbitrage desks may allocate more USDC to edgeX markets, tightening spreads and increasing trading activity. Long-term effects: if integration succeeds and attracts sustained trading volume and institutional users, USDC could become a preferred collateral on edgeX, increasing steady-state utility and settlement volume. Risks that could temper upside include delayed or partial integration, limited initial liquidity, or competitive responses from other DEXs; but overall the move strengthens USDC’s use-case in derivatives trading, implying a positive price/utility impact for USDC relative to a neutral baseline.