USD Coin, the second-largest stablecoin market capitalization after Tether (USDT), is now available on Polkadot Network.
Circle, the issuer of USD Coin, has launched USD Coin on the Polkadot network, the company announced on September 19. Polkadot USDC is now transferable to Polkadot parachains via the XCM protocol using Circle Account and Circle APIs, according to the Circle website.
According to the announcement, PolkadotUSDC is natively issued on Polkadot Asset Hub, a typical para chain designed for giving, administering, and transferring digital assets across the Polkadot ecosystem.
Circle emphasized that Circle Account and Circle APIs only support Polkadot USDC natively issued on Polkadot Asset Hub in the Polkadot ecosystem. Before using XCM, users must transmit USDC from their Circle Account to an external Polkadot Asset Hub wallet address.
When transferring USDT from Polkadot Asset Hub to other parachains via XCM, users must move back to Polkadot Asset Hub via XCM before depositing into their Circle Account, according to Circle.
“Please do not attempt to deposit XCM-transferred USDC from a parachain other than Polkadot Asset Hub to your Circle Account, as it may not be recoverable and could result in a loss of funds.”
Polkadot support on USDC is another addition to the stablecoin pegged to the U.S. dollar. USDC now supports 14 different blockchain networks, including Ethereum, Tron, Stellar, and Solana.
Similar to other blockchain integrations, the most recent integration with Polkadot seeks to maintain Circle as a leading interoperable cryptocurrency and support low-cost transactions. Polkadot enables trading, borrowing, and leasing on parachains such as Centrifuge, HydraDX, and Moonbeam.
In 2020, Polkadot will debut as a network of multiple independent blockchains, also known as parachains. Such blockchains function concurrently to expedite transactions while benefiting from Polkadot’s security and decentralization.
At the time of writing, the number of blockchains supported by USDC is more significant than those supported by rival stablecoin USDT, which supports 11 networks.
Tether, the issuer of USDT, ceased minting the stablecoin on three blockchains, including Bitcoin Omni Layer, Bitcoin Cash, and Kusama, in August 2023. The company cited the need for more user interest.
