Circle, a prominent stablecoin issuer, has recently unveiled its plans to mint USD Coin (USDC) directly on the Polygon network, a layer-2 scaling solution built on Ethereum. This exciting development allows users and developers to access USDC on the Polygon network, eliminating the need for the bridged USDC from Ethereum. Stablecoins like USDC have gained immense popularity in the cryptocurrency world due to their ability to maintain a stable value, and USDC stands as the sixth largest cryptocurrency and the second largest stablecoin in terms of market cap, according to Coinmarketcap.
The Benefits of Circle’s Collaboration with Polygon
Circle’s collaboration with Polygon brings forth numerous benefits for businesses and developers. With this solution, users can easily access on/off ramps for USDC on Polygon PoS, reducing the costs and delays often associated with third-party bridging. Moreover, Circle Mint and Circle’s developer APIs offer full support for USDC on Polygon, enabling swift and cost-effective transactions. As a result, Polygon becomes an ideal choice for remittances, trading, and decentralized applications (dApps) that rely on stablecoins.
The Evolution of USDC on Polygon
Before the introduction of Circle’s native USDC on Polygon, businesses were required to use bridged USDC (USDC.e) from the Ethereum blockchain. However, the new native USDC on Polygon can now be redeemed at a 1:1 ratio for United States dollars, adding greater convenience for users. Circle plans to discontinue the deposits and withdrawals of USDC.e on Polygon through Circle Mint and its APIs by November 10, 2023. Additionally, Circle aims to launch a cross-chain transfer protocol to connect with other blockchain networks via Polygon in the near future.
As one of Ethereum’s layer-2 scaling solutions, Polygon PoS offers scalability, faster settlement times, and improved cost efficiency. With over 475 dApps and more than 300,000 active wallet addresses, the Polygon PoS ecosystem has become a thriving environment for blockchain innovation. The integration of USDC on Polygon marks a significant milestone for the blockchain industry, combining the security and decentralization of Ethereum with the speed and efficiency of Polygon. This development showcases the commitment of the cryptocurrency industry to create more accessible and efficient financial systems for everyone.
