Bridge
Switching to native USDC
How eUSD is exchanged for USDC once Circle's bridge to Arc opens.
Circle plans to run its own USDC bridge to Arc. Once that bridge is live, eUSD is exchanged for native USDC one for one and Envelope stops issuing new eUSD.
What happens to your eUSD
New deposits close first, so no further eUSD is created. The USDC backing the outstanding supply is then moved to Arc, and an exchange opens where every eUSD holder can swap for USDC one for one, at any time and with no deadline.
The exchange cannot open underwater
It refuses to open unless the USDC on hand fully covers all outstanding eUSD, so the last holder to redeem is covered as fully as the first.
If you hold a token that launched paired in eUSD, its pool converts to USDC as well. See eUSD to USDC migration.