Circle Unveils Paymaster to Pay Gas Fees Using USDC

Circle, the issuer of the USDC stablecoin, has introduced a new feature called Paymaster, which will allow users to pay blockchain transaction fees or gas fees, using USD. 

As per the announcement , the feature is currently available on the Arbitrum and Base networks. This gas fee requirement has traditionally required users to retain currencies like Ether and others on-chain, with transaction failures occurring when there are insufficient funds to cover gas fees.

Traditionally, blockchain users are required to pay gas fees in the native token of the network, like ETH for Ethereum.  This can be inconvenient for users who do not hold these tokens or want to avoid managing multiple cryptocurrencies across different networks.

Paymaster eliminates this complexity by handling gas fees automatically. Users only need to hold USDC, while Paymaster converts it into the required native token to process transactions seamlessly.

Paymaster is also developer-friendly. It integrates easily with any wallet that supports the ERC-4337 token standard and does not require a Circle Console account.

This permissionless tool ensures a smooth experience for users while giving developers the flexibility to remove the need for native tokens in their applications. With comprehensive documentation available, developers can quickly implement this feature and enhance their app’s functionality.

While Paymaster typically charges a 10% fee on the gas amount, Circle is offering the service for free until June 30, 2025.