Circle Launches USDC Stablecoin On Polkadot Network

[ad_1]

Stablecoin issuer Circle has launched the USD Coin (USDC) on the Polkadot community, increasing the token’s native operations to 14 blockchain networks, together with Ethereum, Solana, Avalanche, and so on.

In response to a weblog submit by Circle on September 19, all builders and customers of the Polkadot community can now natively entry the USDC token without having a bridge.

What To Know About Polkadot USDC?

The Polkadot USDC can be issued on the community’s Asset Hub primarily based on Circle’s announcement. To elucidate, the Polkadot community contains a number of impartial blockhains often called parachains.

The Asset Hub is a selected parachain often called the “homebase” of all property within the Polkadot community. It’s designed to facilitate the creation, administration, and switch of digital property throughout all parachains within the Polkadot ecosystem.

Subsequently, the issuance of USDC on the Polkadot Asset Hub permits the straightforward motion of the stablecoin to different parachains utilizing the XCM protocol, Polkadot’s native cross-consensus messaging format.

Commenting on the launch of Polkadot USDC, Björn Wagner, co-founder of Parity Applied sciences, the corporate behind Polkadot, has expressed a lot pleasure in direction of this growth. Wagner stated:

Stablecoins are an necessary constructing block for on-chain economies to flourish, and I’m thrilled that native USDC has lastly been issued on Polkadot’s Asset Hub, making it obtainable securely to all initiatives within the Polkadot ecosystem. USDC, issued by Circle, is the second largest stablecoin by market cap after USDT, which has already been issued natively on Polkadot’s Asset Hub. This pivotal second will enhance liquidity and permit for simpler institutional entry to the Polkadot ecosystem.

Nevertheless, it’s value noting that Circle accounts and Circuit API will solely help Polkadot USDC natively minted on the Asset Hub. Which means that customers must switch USDC from their Circle account to the Polkadot Asset Hub earlier than transferring it to a different parachain utilizing XCM.

Equally, all Polkadot customers should switch their USDC by means of the Asset Hub to a Circle account. The stablecoin issuing firm states that makes an attempt to maneuver the USDC straight from a parachain to an exterior Circle account can lead to asset loss.

Circle Continues USDC Blockchain Growth

As earlier said, Circle’s launch of USDC on Polkadot extends the token’s native operations to 14 blockchains. In September alone, USDC had been natively launched on 4 different blockchain networks moreover Polkadot. These networks embody the Close to protocol, the Noble blockchain, the OP Mainnet, and the Coinbase-developed Base community.

Contemplating the steep decline in USDC’s market share for the reason that begin of 2023, these integrations are broadly welcome developments that would enhance the adoption stage of the stablecoin.

On the time of writing, USDC nonetheless ranks because the second-largest stablecoin with a market cap worth of $25.51 billion, a 41% lower from the token’s market share in January, primarily based on information from DeFiLlama.