Stablecoin provider Circle has actually released the USD Coin (USDC) on the Polkadot network, broadening the token’s native operations to 14 blockchain networks, consisting of Ethereum, Solana, Avalanche, and so on.
According to an article by Circle on September 19, all designers and users of the Polkadot network can now natively gain access to the USDC token without requiring a bridge.
What To Know About Polkadot USDC?
The Polkadot USDC will be provided on the network’s Asset Hub based upon Circle’s statement. To discuss, the Polkadot network consists of a number of independent blockhains referred to as parachains.
The Asset Hub is a particular parachain referred to as the “homebase” of all properties in the Polkadot network. It is created to help with the production, management, and transfer of digital properties throughout all parachains in the Polkadot community.
Therefore, the issuance of USDC on the Polkadot Asset Hub permits the simple motion of the stablecoin to other parachains utilizing the XCM procedure, Polkadot’s native cross-consensus messaging format.
Commenting on the launch of Polkadot USDC, Björn Wagner, co-founder of Parity Technologies, the business behind Polkadot, has actually revealed much enjoyment towards this advancement. Wagner stated:
Stablecoins are an essential foundation for on-chain economies to thrive, and I’m delighted that native USDC has actually lastly been provided on Polkadot’s Asset Hub, making it readily available safely to all tasks in the Polkadot community. USDC, provided by Circle, is the 2nd biggest stablecoin by market cap after USDT, which has actually currently been provided natively on Polkadot’s Asset Hub. This turning point will enhance liquidity and enable much easier institutional access to the Polkadot community.
However, it deserves keeping in mind that Circle accounts and Circuit API will just support Polkadot USDC natively minted on the Asset Hub. This indicates that users need to move USDC from their Circle account to the Polkadot Asset Hub prior to moving it to another parachain utilizing XCM.
Similarly, all Polkadot users need to move their USDC through the Asset Hub to a Circle account. The stablecoin providing business states that tries to move the USDC straight from a parachain to an external Circle account can lead to property loss.
Circle Continues USDC Blockchain Expansion
As earlier mentioned, Circle’s launch of USDC on Polkadot extends the token’s native operations to 14 blockchains. In September alone, USDC had actually been natively released on 4 other blockchain networks besides Polkadot. These networks consist of the Near procedure, the Noble blockchain, the OP Mainnet, and the Coinbase-established Base network.
Considering the high decrease in USDC’s market share considering that the start of 2023, these combinations are extensively welcome advancements that might enhance the adoption level of the stablecoin.
At the time of composing, USDC still ranks as the second-largest stablecoin with a market cap worth of $25.51 billion, a 41% reduction from the token’s market share in January, based upon information from DeFiLlama.
Total crypto cap valued at $1.058 trillion on the per hour chart | Source: overall chart on Tradingview.com
Featured image from CoinMarketCap, chart from Tradingview