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Circle USDC Lands on Polkadot
20 Sep 2023 by Rory Kejzerko 2 min read
Circle USDC Lands on Polkadot

Crypto’s second largest stablecoin USD Coin (USDC) has now landed on Polkadot (DOT). 

The news comes via an announcement from the coin’s issuer Circle, who stated that USDC is now immediately available for developers and users working with Polkadot’s network of heterogeneous blockchains called parachains and parathreads. 

In practice, what this means is that such actors now have access to a fully reserved, dollar-backed stablecoin that’s always redeemable 1:1 for US dollars.

USDC on Polkadot is natively issued on Polkadot Asset Hub- a parachain that’s designed for ‘issuing, managing, and transferring digital assets across the Polkadot ecosystem’.

Here, Circle has warned that Polkadot Accounts and APIs only support Polkadot USDC natively issued on the Polkadot Asset Hub, meaning USDC holders wanting to send their funds into the world of Polkadot must first send them from their Circle Account to an external Polkadot Asset Hub wallet address. From here, they can then begin transfers using the XCM protocol. 

Additionally, any USDC transfers to a Circle Account must only be sent from the Polkadot Asset Hub, as transfers from other parachains could result funds being sent into the blockchain abyss: 

“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”- Circle. 

With its inauguration onto Polkadot, Circle USDC is now supported across 14 different blockchain networks, including Ethereum (ETH), Solana (SOL), Tron (TRX), and Stellar (XLM).

In turn, the move cements USDC as an unequivocal leader in the interoperable stablecoin game, as its main rival Tether USD (USDT) - which pips it in terms of market capitalisation - only supports 11 blockchain networks at the time of writing. 

It also builds on the momentum that Circle has garnered over the past few weeks through partnerships and acquisitions with the likes of VisaCoinbase, and Shopify.

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This article is intended for educational purposes and is not financial advice.