Circle emphasized that Circle Account and Circle APIs will exclusively facilitate the use of Polkadot USDC, natively issued within the Polkadot Asset Hub.
Circle’s native stablecoin USDC, also the second-largest stablecoin by market cap, is now gearing up for a launch on the Polkadot blockchain, as it continues to expand across different blockchain platforms.
On Tuesday, September 19, Circle made the official announcement of launching the USDC Coin on the Polkadot network. As per Circle’s website, Polkadot USDC is now readily accessible to developers and users. Thus, users can seamlessly transfer this stablecoin to parachains within the Polkadot network through the XCM protocol, utilizing Circle Account and Circle APIs.
The announcement further elaborates that Polkadot USDC is specifically issued within the Polkadot Asset Hub. It functions as a shared parachain engineered for the issuance, administration, and transmission of digital assets across the expansive Polkadot ecosystem.
Circle emphasizes that Circle Account and Circle APIs exclusively facilitate the use of Polkadot USDC, natively issued within the Polkadot Asset Hub. Consequently, users need to transfer their USDC from their Circle Account to an external wallet address within the Polkadot Asset Hub before utilizing the XCM protocol.
For users looking to transfer USDC from the Polkadot Asset Hub to other parachains through XCM, it is essential to conduct a prior transfer back to the Polkadot Asset Hub via XCM before depositing these funds into their Circle Account. Speaking on the development, Circle noted:
“Please do not attempt to deposit XCM-transferred USDC 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.”
Polkadot Adds Support for USDC Stablecoin
The addition of Polkadot support for USDC marks yet another expansion of this US dollar-pegged stablecoin. With this latest integration, USDC has extended its compatibility to encompass a total of 14 diverse blockchain networks, including Ethereum, Tron, Stellar, Solana, and more.
Consistent with previous blockchain integrations, the recent incorporation of Polkadot aligns with Circle’s objective to establish itself as a prominent interoperable cryptocurrency while facilitating cost-effective transactions. This integration also enables trading, borrowing, and lending activities on parachains like Centrifuge, HydraDX, and Moonbeam.
Launched in 2020, Polkadot operates as a network comprising numerous independent blockchains, known as parachains. These parachains function concurrently, facilitating quicker transactions and benefiting from the overall security and decentralization provided by the Polkadot ecosystem.
USDC’s support for various blockchains has now surpassed the number of networks accommodated by its rival stablecoin, USDT, which currently extends its compatibility to a total of 11 networks. In August 2023, the issuer of USDT, Tether, ceased minting the stablecoin on three blockchains, namely Bitcoin Omni Layer, Bitcoin Cash, and Kusama, citing a lack of user interest as the reason behind this decision.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
