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- Circle makes USDC directly on Polygon, simplifying DeFi use without Ethereum bridges.
- Low-cost, speedy transactions are possible with native USDC, improving payments and DeFi access.
In a significant development, stablecoin issuer Circle has commenced minting USD Coin (USDC) directly on the Ethereum layer-2 scaling protocol Polygon. This innovative step removes the necessity of transitioning USDC from Ethereum to alternative blockchain networks, marking a substantial advancement in the accessibility of decentralized finance (DeFi).
1/ It’s official. #ItsStillStableSeptember and $USDC is now available natively on @0xPolygon PoS mainnet!
Learn the benefits of native USDC and how to switch from bridged USDC.e 👇https://t.co/KcK55sT4KH pic.twitter.com/Gm6HjR62KW
— Circle (@circle) October 10, 2023
Circle Mint and developer application programming interfaces (APIs) have seamlessly joined forces with Polygon, using its robust scaling capabilities. This partnership simplifies processes for businesses and developers, enabling them to construct decentralized applications utilizing USDC directly on Polygon.
The introduction of Polygon-based USDC opens the doors to rapid, cost-effective transactions spanning a wide range of applications, including payments, remittances, trading, borrowing, and lending. Circle’s initiative is poised to elevate the efficiency of DeFi operations, fostering a more accessible financial ecosystem.
The transition from Bridged to Native USDC
Before Circle’s announcement, users had to rely on bridged USDC (USDC.e) when they operated on Polygon. However, in contrast to its predecessor, the new native USDC can be redeemed at a 1:1 ratio for United States dollars. This shift negates intermediary requirements, providing users with greater security and autonomy over their assets.
Circle has slated plans to phase out its support for USDC.e on Polygon, effective from November 10. Users must take note of this development, as assets sent to Circle Mint accounts post this date may risk becoming unrecoverable. This move underscores Circle’s commitment to prioritizing its native Polygon USDC offering.
Market Capitalization and DeFi Integration
The native Polygon USDC has swiftly gained traction, boasting a current market capitalization approximating 4.3 million USDC on the scaling protocol. Its presence on Polygon opens up many opportunities, encompassing cost-effective global payments, remittances, and involvement in leading DeFi protocols.
Circle’s strategic integration with Polygon allows users access to many DeFi protocols. Notably, this includes prominent platforms such as Aave, Compound, Curve, Uniswap, and QuickSwap. The capability to seamlessly engage with these DeFi protocols amplifies users’ financial possibilities and opportunities for yield generation.
Cross-Chain Transfer Protocol: Facilitating Interoperability
Circle harbors ambitious intentions to further enrich its offerings by introducing a cross-chain transfer protocol on Polygon. This protocol will facilitate interoperability with other blockchain networks, simplifying Polygon-based USDC transfers to and from the Ethereum blockchain. This move bolsters the linkage between diverse blockchain ecosystems and extends the utility of USDC.
Circle’s affiliation with Polygon signifies a pivotal juncture for the DeFi landscape. The native Polygon USDC streamlines DeFi processes and democratizes access for a more expansive audience. This aligns with the overarching goal of democratizing finance via blockchain technology.
Circle’s Expanding Horizons
Beyond its partnership with Polygon, Circle has been proactively broadening its horizons within the blockchain domain. In September, the company announced native stablecoin liquidity access on the NEAR protocol ecosystem. This stride represents a significant advancement in enhancing the usability and accessibility of USDC across diverse blockchain networks.
With its eyes on interoperability and accessibility, Circle continues to push the boundaries of what is possible in decentralized finance. As the DeFi landscape evolves, Circle remains at the forefront, offering innovative solutions that benefit both businesses and individual users.
