Stablecoin issuer Circle has unveiled its groundbreaking integration of USD Coin (USDC) directly on the Ethereum layer-2 scaling platform, Polygon. This development marks a significant leap in accessibility and convenience for users and developers, as it eliminates the need to bridge the stablecoin from Ethereum to another blockchain.
Circle’s introduction of Polygon-based USDC comes with the full support of Circle Mint and their developer Application Programming Interfaces (APIs). By tapping into Polygon’s impressive scaling capabilities, businesses and developers can now harness the power of USDC to create decentralized applications. This innovation opens the doors to a wide range of applications, offering near-instant, low-fee transactions for various purposes, including payments, remittances, trading, borrowing, and lending.
Before this announcement, users of the Polygon protocol had to rely on bridged USDC (USDC.e) from the Ethereum blockchain. It’s important to note that USDC.e is not issued by Circle, unlike the newly introduced native USDC on Polygon. The new tokens will be redeemable at a 1:1 ratio for United States dollars.
Circle has provided support for deposits and withdrawals of USDC.e on Polygon for Circle Mint and its APIs. However, the issuer plans to discontinue this service starting November 10. Therefore, users are urged to be cautious, as assets sent to Circle Mint accounts using USDC.e after this date may become unrecoverable.
The provision of native Polygon-based USDC offers a multitude of benefits, including low-cost global payments and remittances. Moreover, it enhances accessibility to trading, borrowing, and lending on leading decentralized finance (DeFi) protocols like Aave, Compound, Curve, Uniswap, and QuickSwap.
Circle’s visionary roadmap also includes launching a cross-chain transfer protocol to Polygon. This advancement will enable interoperability with other blockchain networks, unlocking seamless transfers of Polygon-based USDC to and from the Ethereum blockchain. The move stands to redefine the landscape of decentralized finance and enhance the utility of USDC for a broader range of applications.
Source: https://cointelegraph.com/news/circle-launches-usdc-tokens-on-polygon
Image: https://unsplash.com/photos/ehaoA14lYMc
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