USD Coin Expands to Polkadot Network, Bolsters Blockchain Integration Count to 14
Summary:
The USD Coin (USDC), the world's second-largest stablecoin, has expanded its operations to include support for the Polkadot network. According to Issuer Circle, this move allows USDC to be portable across parachains within the Polkadot network via the XCM protocol. With Polkadot's support, USDC now integrates with a total of 14 different blockchain networks, including Ethereum, Tron, and Stellar. The addition of this network boosts Circle's interoperability and supports low-cost transactions, while enabling trading, lending, and borrowing services on parachains.
In a continuation of its expansion into varying blockchain networks, USD Coin (USDC), the second-largest market capitalization stablecoin following Tether (USDT), has now been launched on Polkadot. This official launch was announced by the USDC issuer, Circle, on the 19th of September and is now functional on the Polkadot network. As provided on Circle’s website, the Polkadot USDC can now be accessed by both developers and users as it can be transferred to parachains within the Polkadot network via the XCM protocol using Circle Account and Circle APIs.
As part of its announcement, Circle confirmed that PolkadotUSDC is essentially issued on Polkadot Asset Hub. This is a combined parachain intended for issuing, managing, and moving digital assets within the Polkadot community. Circle was emphatic about only supporting Polkadot USDC that is initially issued on Polkadot Asset Hub within the Polkadot ecosystem. This indicates that users will have to shift USDC from their Circle Account to a separate Polkadot Asset Hub wallet address, in order to make use of XCM.
As Circle added, when users shift USDT from Polkadot Asset Hub to other parachains using XCM, it is compulsory that they revert back to Polkadot Asset Hub through XCM prior to adding it on their Circle Account. The company issued a warning against depositing XCM-transferred USDC from a non-Polkadot Asset Hub to a Circle Account. This action could potentially lead to funds becoming non-recoverable and thus, financial loss.
Following the Polkadot addition, the number of blockchain networks supported by the U.S. dollar-linked stablecoin USDC has increased to 14, among which are Ethereum, Tron, Stellar, Solana, and others. As is the case with other blockchain amalgamations, the latest collaboration with Polkadot aims to uphold Circle as an important interoperable cryptocurrency and to bolster low-cost transactions. The amalgamation features trading, lending, and borrowing on parachains such as Centrifuge, HydraDX, and Moonbeam.
Known for being a network consisting of multiple independent blockchains or parachains, Polkadot came into existence in 2020. These blockchains function simultaneously, thus expediting transactions, while also availing the overall Polkadot security and decentralization benefits. Analysts have noted that USDC supports more blockchains than its rival stablecoin USDT, which supports a total of 11 networks at present. Interestingly, in August 2023, Tether, the USDT issuer, ceased minting the stablecoin on three blockchain networks, Bitcoin Omni Layer, Bitcoin Cash, and Kusama, attributing this to the lack of users' interest.
Published At
9/19/2023 2:11:51 PM
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