Circle, the issuer of the USD Coin (USDC), the second-largest stablecoin by market capitalisation, is expanding its reach by launching USDC on the Polkadot blockchain. On September 19, Circle officially introduced USDC Coin on the Polkadot network, making Polkadot USDC available to developers and users.
Polkadot, launched in 2020, operates as a network comprising multiple independent blockchains known as parachains. These parachains function concurrently, facilitating quicker transactions while benefiting from the overall security and decentralisation of the Polkadot ecosystem.
Polkadot USDC is now accessible to developers and users and operates within the Polkadot Asset Hub. This shared parachain is designed for managing, issuing, and transferring digital assets across the vast Polkadot ecosystem. Polkadot USDC is exclusively facilitated through Circle Account and Circle APIs, and users need to transfer their USDC from their Circle Account to an external wallet address within the Polkadot Asset Hub before utilising the XCM protocol for transfers.
This integration marks another milestone in USDC's expansion, making it compatible with 14 diverse blockchain networks, including Ethereum, Tron, Stellar, Solana, and more. With this move, Circle aims to establish itself as an interoperable cryptocurrency, enabling cost-effective transactions, trading, borrowing, and lending activities on various parachains like Centrifuge, HydraDX, and Moonbeam.
USDC's support for various blockchains has now surpassed that of its rival stablecoin, USDT (United States Dollar Tether), which extends its compatibility to 11 networks. The expansion to the Polkadot ecosystem aligns with Circle's objective to make USDC widely used, simplifying pricing and enabling almost instant settlement of transactions.
As the Polkadot ecosystem expands and more blockchain integrations occur, USDC's potential to become one of the most widely used dollar-pegged assets continues to grow. This development benefits merchants and consumers, simplifying pricing and enabling almost instant settlement of transactions, in contrast to the delayed processing times associated with traditional credit card payments.
Circle's launch of USDC on the Polkadot Asset Hub represents a significant step in the stablecoin's journey toward becoming a universally accepted and versatile digital currency. With its increasing presence across various blockchain networks, USDC holds the potential to play a crucial role in shaping the future of digital finance.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash