Circle, the stablecoin’s issuer, has declared that it would no longer support USDC on the Flow network with effect from September 3, 2024.
The blockchain network’s impending Crescendo update is the reason behind Circle’s decision to discontinue support for USDC on Flow, the company stated in a blog post on August 5.
The US dollar-pegged stablecoin will continue to be mined on Flow up to August 27, 2024, at 12 p.m. ET. Circle wrote:
“Circle Mint customers, retail USDC holders, and non-Circle customers who hold USDC on Flow (Cadence) are highly encouraged to transfer from Flow to other blockchains ahead of the Sept. 3, 2024 deadline”
Flow’s Crescendo upgrade is expected on Sept. 4, 2024, at 5 am PT.
USDC on Flow
The stablecoin issuer will freeze all accessible USDC on Flow when the deadline approaches. When manual redemptions start on September 4, 2024, a picture of user business and institutional client balances on the chain will make things easier.
Circle states on its blog that it solely serves institutional and business clients. In light of this, Flow has given its USDC holders and non-Circle clients with blockchain balances an explanation of what will happen next. Team Flow said in the announcement published on Aug. 5:
“Effective on September 3, 2024, at 3 a.m. ET ahead of the Crescendo network upgrade, Circle will cease support for USDC on Cadence, as EVM-based ERC-20 USDC will become naturally compatible across the entire Flow ecosystem. Circle and Flow will offer dedicated resources and support to facilitate this process, ensuring a smooth transition for all users”
What Next for Users?
The Flow team is scheduled to release a new wrapped token on the network within the next seven days, as per their update.
The wrapped token can be readily swapped ahead of the September 3 update by holders of USDC on Flow’s Cadence release, since USDC bridges on the Ethereum network will back it.
Users looking to wrap and bridge assets before of the Crescendo update, have a few options: depositing to Dapper Wallet, switching tokens to Flow’s native token FLOW, or transferring tokens into the soon-to-launch wrapped USDC.
Alternatively, after the deadline of September 3rd, they may choose to wait for manual redemption.
