Circle expands Polkadot ecosystem with native USDC stablecoin

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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.