Zilliqa Launches zUSDC via XBridge as Network Takes Full Control of Stablecoin Infrastructure

TLDR:

• Zilliqa launches zUSDC via XBridge, shifting USDC liquidity from third-party bridges to native network infrastructure.
• The zUSDC contract is live at 0xe59f97Fac09ee00AEEF320485ee45D5CcfbBC1E9, supporting DEX pools and stablecoin trading pairs.
• Debridge support on Zilliqa permanently ends March 31, 2026, requiring all legacy USDC holders to act immediately.
• XBridge receives a full UI overhaul as Zilliqa works toward automated, seamless cross-chain token transfer processing.

zUSDC is now live on Zilliqa through the network’s native XBridge system. This change moves USDC liquidity away from third-party bridging toward Zilliqa-operated infrastructure.

The transition is designed to improve long-term reliability and give Zilliqa direct control over stablecoin operations.

Users currently holding USDC on Zilliqa must act before March 31, 2026. After that date, Debridge support on the network will permanently end, affecting all remaining legacy USDC holders.

Zilliqa Transitions USDC Liquidity to Its Own XBridge Infrastructure

zUSDC is a USDC representation bridged to Zilliqa through the network’s own XBridge system. Its contract address is 0xe59f97Fac09ee00AEEF320485ee45D5CcfbBC1E9.

The token supports stablecoin trading, DEX liquidity pool participation, and arbitrage across pairs such as kUSDC and zUSDT. Zilliqa now holds direct operational control over this stablecoin liquidity within its ecosystem.

Previously, USDC liquidity on Zilliqa depended on external bridging infrastructure from third-party operators. Most of that liquidity was concentrated in DEX pools supporting trading and arbitrage activity.

Running external infrastructure under those conditions created an operational dependency. That dependency came without proportional benefit to the broader network, making this transition a practical move for the ecosystem.

The migration followed a phased process. Existing USDC was first bridged back to Ethereum as the starting point. It was then minted as zUSDC under Zilliqa-managed infrastructure and re-bridged through XBridge.

From there, funds were redeployed into ecosystem trading pools, with each phase structured to keep disruption low throughout.

Zilliqa shared the update on its official channel, stating it was “introducing zUSDC via XBridge on Zilliqa” and that the move improves reliability while keeping “stablecoin liquidity flowing across the ecosystem.”

As part of the Phase 3 ecosystem rollout, a zUSDC trading pair also launched on Plunderswap. Additionally, XBridge received a full UI overhaul, with the refreshed interface now available at xbridge.zilliqa.com.

Users Face March 31 Deadline as Debridge Support on Zilliqa Ends

Users holding USDC on Zilliqa must bridge their assets out through Debridge before March 31, 2026. Two options are currently available for doing so.

The Plunderswap bridge widget is accessible at plunderswap.com/bridge, while the StakeZIL bridge is available at stakezil.com. Both remain operational until the sunset date arrives.

After March 31, Debridge will no longer function on Zilliqa. Users who still hold legacy USDC beyond that point will need to reach out to Zilliqa directly for assistance. The team can be contacted at enquiry@zilliqa.com for support with any remaining holdings.

This transition does not remove stablecoin liquidity from the Zilliqa ecosystem. Rather, that liquidity is being moved to infrastructure that Zilliqa directly owns and operates.

The network frames this as a long-term step toward institutional-grade financial rails that the network itself controls.

Alongside the zUSDC launch, Zilliqa is also improving XBridge’s processing efficiency. The team is actively developing automation for bridge transaction processing.

This effort is aimed at making token transfers faster and more seamless across all chains that XBridge supports.

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