Circle Launches Native USDC on Polygon
Rebeca Moen Oct 11, 2023 12:04
Circle has natively integrated USDC on the Polygon PoS network, enabling direct access for users and developers. This move phases out the need for bridged USDC.e, providing a more stable and straightforward means for transactions on the network. The development is anticipated to foster numerous use cases, enhancing the overall ecosystem.
USDC has been natively introduced on the Polygon Proof of Stake (PoS) network, eliminating the necessity for bridging. With this update, both developers and users can now access USDC directly on Polygon PoS. The integration is facilitated through full support from Circle Mint and Circle APIs, enhancing the ease of accessing USDC liquidity on the Polygon PoS network, known for its speed and cost efficiency.
Enhanced Accessibility and Efficiency
The Polygon PoS blockchain is recognized for its scalability, faster settlement times, and cost-effective transaction processing, acting as a complement to Ethereum’s decentralized security. With the new native USDC integration, businesses and developers can build applications on Polygon PoS that resonate with a wider audience due to near-instant transaction times and minimal costs. As of October 2023, the Polygon PoS ecosystem boasts over 475 decentralized applications (dApps) and more than 300,000 active wallet addresses. The integration of USDC on this platform opens up numerous possibilities including payments, remittances, trading, borrowing, and lending.
Bridged vs. Native USDC
Previously, a bridged form of USDC, referred to as USDC.e, was utilized on the Polygon PoS network, which required bridging from Ethereum. Unlike the newly launched native USDC, USDC.e was not officially issued by Circle. However, with the new native USDC, which is officially issued by Circle, users are assured of a stable foundation for their transactions, as it's redeemable 1:1 for US dollars. Post November 10, support for deposits and withdrawals of bridged USDC.e on Polygon PoS via Circle Mint and its APIs will be discontinued, thereby endorsing the usage of native USDC over the bridged version.
This development is poised to empower exchanges, digital wallets, institutional traders, and developers with a myriad of use cases via the Circle Mint and Circle APIs. It enables globally accessible low-cost payments and remittances, 24/7 trading, borrowing, and lending on platforms like Aave, Uniswap, and Quickswap. Additionally, users can now hold savings in digital dollars without requiring a traditional bank account, fostering financial inclusivity.
In a subsequent phase, Circle plans to introduce a cross-chain transfer protocol to Polygon, enhancing interoperability with other blockchain networks. This move is projected to facilitate transfers of Polygon-based USDC to and from the Ethereum blockchain, broadening the spectrum of USDC utility across blockchain networks.
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