Stablecoin issuer Circle has recently made an announcement that it has started minting USD Coin (USDC) natively on the Ethereum layer-2 scaling protocol Polygon. This new development allows users and developers to access USDC on Polygon without the need to bridge the stablecoin from Ethereum to another blockchain. Circle Mint and Circle’s developer APIs now support Polygon-based USDC, taking advantage of Polygon’s scaling capabilities.
The integration of USDC on Polygon enables businesses and developers to build decentralized applications with the stablecoin. This offering is expected to facilitate near-instant and low-fee transactions for various use cases, including payments, remittances, trading, borrowing, and lending.
Before the introduction of native Polygon USDC, users of the protocol had to utilize bridged USDC (USDC.e) from the Ethereum blockchain. Unlike the token issued by Circle, USDC.e is not redeemable for United States dollars. The new native USDC offering will allow users to redeem it at a 1:1 ratio for USD.
Circle had previously provided support for deposits and withdrawals of USDC.e on Polygon through Circle Mint and its APIs. However, the company plans to discontinue this service from November 10th. Users who attempt to send USDC.e to Circle Mint accounts after this date may risk losing their assets, as they may become unrecoverable.
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The introduction of native Polygon USDC by Circle opens up possibilities for low-cost global payments and remittances. It also provides accessibility to trading, borrowing, and lending on popular decentralized finance (DeFi) protocols like Aave, Compound, Curve, Uniswap, and QuickSwap.
Circle has further plans to launch a cross-chain transfer protocol to Polygon, enabling interoperability with other blockchain networks. This will allow Polygon-based USDC to be transferred to and from the Ethereum blockchain, increasing its flexibility and utility.
The market capitalization for the new Polygon USDC token currently stands at approximately 4.3 million USDC on the scaling protocol, as shown on Polygonscan.
The integration of USDC on Polygon signifies another step towards the wider adoption and use of stablecoins in the cryptocurrency ecosystem. The ability to transact with stablecoins on layer-2 scaling solutions like Polygon enhances the efficiency and scalability of blockchain networks. It opens up opportunities for more seamless and cost-effective transactions, especially for decentralized applications and DeFi platforms.
Circle’s expansion of USDC onto Polygon aligns with its mission to provide open, transparent, and secure financial infrastructure for the digital economy. By leveraging the capabilities of Polygon, Circle aims to enhance the user experience and increase the utility of its stablecoin offering.
In conclusion, Circle’s announcement of native USDC minting on Polygon brings new opportunities for businesses, developers, and users to utilize the stablecoin without relying on bridging to other blockchains. The integration of USDC on Polygon enables fast, affordable transactions for various use cases and enhances accessibility to DeFi protocols. Circle’s future plans to launch a cross-chain transfer protocol to Polygon will further enhance the interoperability and utility of USDC. This development signals the growing importance of stablecoins in the cryptocurrency market and the broader digital economy.
