USD currency (USDC), the second largest stablecoin by market capitalization after Tether (USDT), continues to expand across different blockchain networks and is now launching on Polkadot.
USDC issuer Circle officially launched USD Coin on the Polkadot network, the firm Announced on September 19. According According to Circle's website, Polkadot USDC is immediately available to developers and users as the stablecoin can now be transferred to parachains on Polkadot via the XCM protocol using Circle Account and Circle API.
According to the announcement, PolkadotUSDC is natively issued on the Polkadot Asset Hub, a common parachain designed to issue, manage and transfer digital assets across the Polkadot ecosystem.
Circle emphasized that Circle Account and Circle API only support Polkadot USDC issued natively on the Polkadot Asset Hub in the Polkadot ecosystem. This means that users must transfer USDC from their Circle account to an external Polkadot Asset Hub wallet address before using XCM.
When transferring USDT from Polkadot Asset Hub to other parachains via XCM, users must transfer back to Polkadot Asset Hub via XCM before depositing to their Circle account, Circle said, adding:
โDo not attempt to deposit USDC transferred by XCM from a parachain other than Polkadot Asset Hub to your Circle account as it may not be recoverable and could result in a loss of funds.โ
Polkadot's support for USDC is another addition to the US dollar-pegged stablecoin. With the latest addition, USDC now supports a total of 14 different blockchain networks, including Ethereum, Tron, Stellar, Solana, and others.
Like other blockchain integrations, the latest integration with Polkadot aims to keep Circle a major interoperable cryptocurrency as well as support low-cost payments. The addition of Polkadot enables trading, borrowing, and lending on parachutes like Centrifuge, HydraDX, and Moonbeam.
Launched in 2020, Polkadot is a network of multiple independent blockchains, also known as parachains. These blockchains operate in parallel with each other to enable faster transactions while benefiting from Polkadot's overall security and decentralization.
Related: Stablecoin decoupling affected USDC and DAI more than others: analysts
The number of blockchains backed by USDC is now greater than the number of networks backed by rival stablecoin USDT, which supports a total of 11 networks at the time of writing this article. In August 2023, USDT issuer Tether stopped minting the stablecoin on three blockchains, including Bitcoin Omni Layer, Bitcoin Cash and Kusama. The firm alleged a lack of interest on the part of users.
Magazine: Big Questions: Did the NSA Create Bitcoin?
Post navigation
