Circle Begins Minting USDC on Ethereum's Polygon, Promises Low-Cost Transactions
Summary:
Circle, the issuer of the US dollar stablecoin, has begun minting its USD Coin (USDC) on Ethereum's layer 2 scaling protocol, Polygon. This development allows both developers and users to access USDC directly, eliminating the need to bridge the stablecoin from Ethereum or other blockchains. It also facilitates the creation of decentralized applications (DApps) with Polygon's USDC, promising near-instant, low-cost transactions for various applications. Additionally, Circle plans to launch a cross-chain transfer protocol on Polygon to promote interoperability between Polygon-based USDC and other blockchain networks.
Circle, the firm responsible for issuing the US dollar stablecoin, has commenced the production of its USD Coin (USDC) directly on Ethereum's level 2 scaling protocol, Polygon. Now, developers and users alike can access USDC without any need to transfer the stablecoin from Ethereum or any other blockchain. Both Circle's Mint and its developer APIs lend support to Polygon-based USDC, capitalizing on the scaling abilities of Polygon.
Circle's announcement illuminated the opportunity for developers and businesses to create decentralized applications (DApps) with Polygon's USDC. This development promises near-instant transactions with minimal fees, suitable for various applications like remittances, payments, trading, and even borrowing and lending. Prior to this development, the protocol users had to utilize bridge USDC (USDC.e) sourced from the Ethereum blockchain. Unlike the new offering, this token isn't issued by Circle. However, the firm reassures its users that the new offering will have a redeemable value equal to US dollars.
Earlier, Circle supported deposit and withdrawal activities for USDC.e on Polygon via the Circle Mint and its APIs. However, after the 10th of November, this service will no longer be available. The firm cautions users against sending bridge USDC.e to Circle Mint accounts due to the risk of asset loss post this date.
Currently, the new Polygon USDC token address reveals a market capitalization of approximately 4.3 million USDC within the scaling protocol. Providing native Polygon USDC builds pathways for low-cost global remittances and payments. It also allows for ease of access for trading, borrowing, and lending on prominent DeFi protocols such as Aave, Uniswap, Quickswap, Compound, and Curve.
To further expand accessibility, Circle has future plans to launch a cross-chain transfer protocol on Polygon. This move will lead to the facilitation of interoperable transactions between Polygon-based USDC and other blockchain networks, including Ethereum.
Published At
10/10/2023 2:01:36 PM
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