Circle Internet Financial has introduced Circle Paymaster, a smart contract designed to streamline blockchain transactions by allowing users to pay gas fees in USDC instead of native tokens like ETH, thereby enhancing user experience and lowering entry barriers for blockchain app interactions. Deployed within the Account Abstraction (ERC-4337) framework on Arbitrum and Base, Circle Paymaster sponsors gas fees for users by verifying their USDC balance, calculating the equivalent gas fee in USDC, and processing transactions through bundlers like Pimlico and Alchemy, which optimize gas usage. This system leverages off-chain signatures to authorize the USDC deductions, aiming to simplify transactions, reduce costs, and ensure reliability through Circle's backing and deep liquidity reserves. The implementation involves setting up a development environment and configuring smart contract interaction services, enabling developers to integrate Circle Paymaster into applications for seamless USDC transactions and gas fee management.