Circle, the stablecoin issuer, has recently announced its venture into minting USD Coin (USDC) natively on the Ethereum layer-2 scaling protocol, Polygon. This move allows users and developers to access USDC without the need for bridging it from Ethereum to another blockchain.
Circle Mint and Circle’s developer application programming interfaces (APIs) now fully support Polygon-based USDC, tapping into the scaling capabilities of Polygon. The integration provides businesses and developers with the opportunity to build decentralized applications with USDC on Polygon. Furthermore, this collaboration is expected to facilitate near-instant and low-fee transactions, catering to a wide range of use cases, including payments, remittances, trading, borrowing, and lending.
Previously, users of the Polygon protocol had to rely on bridged USDC (USDC.e) from the Ethereum blockchain. However, Circle’s introduction of native Polygon USDC eliminates the need for such bridging. Circle’s native USDC on Polygon will be redeemable at a 1:1 ratio for United States dollars, providing greater convenience to users.
In light of the new offering, Circle has announced its decision to discontinue support for deposits and withdrawals of USDC.e on Polygon via Circle Mint and its APIs. Effective from November 10, users who attempt to send USDC.e to Circle Mint accounts after this date may risk their assets becoming irrecoverable. Users are advised to take note of this development and make the necessary arrangements.
Circle’s native Polygon USDC aims to open up a realm of possibilities, including low-cost global payments and remittances. Additionally, the introduction of USDC on Polygon provides accessibility to trading, borrowing, and lending on popular decentralized finance protocols such as Aave, Compound, Curve, Uniswap, and QuickSwap. This expansion in utility offers users increased flexibility and opportunities for financial growth in the decentralized ecosystem.
As part of their future plans, Circle intends to launch a cross-chain transfer protocol to Polygon. This protocol will facilitate interoperability between Polygon-based USDC and other blockchain networks. This move is crucial in unlocking the potential for USDC transfers to and from the Ethereum blockchain, further enhancing liquidity and promoting seamless integration across multiple platforms.
Circle’s introduction of native USDC on the Polygon layer-2 scaling protocol signifies a significant milestone in the evolution of stablecoin usage and accessibility. By eliminating the need for bridging, Circle has simplified the process for users and developers to engage with USDC on Polygon. The enhanced scalability and reduced transaction fees offered by Polygon further amplify the benefits of incorporating USDC into various financial activities. As Circle continues to innovate and expand its services, the possibilities for decentralized finance ecosystem are boundless.