Circle launches USDC on Polkadot Asset Hub

Polkadot integrates USDC stablecoin to enhance liquidity, interoperability, and institutional access within its ecosystem.

Sep 19, 2023 - 19:26
Sep 20, 2023 - 09:13
 23
Circle launches USDC on Polkadot Asset Hub
Reading time - 1 min

With the recent integration of USDC into Polkadot's Asset Hub, the stage is set for a transformative shift in liquidity, interoperability, and institutional access within the Polkadot ecosystem.

Polkadot, renowned for its interoperability capabilities, facilitates seamless communication among multiple blockchains. With the integration of USDC, a stablecoin pegged 1:1 to the U.S. dollar, Polkadot aims to enhance liquidity and provide a more streamlined gateway for institutions to its ecosystem.

USDC is now natively issued on Polkadot's Asset Hub. This means that all parachains, which are individual blockchains operating in parallel within the Polkadot network, can utilize the stablecoin. Notably, Centrifuge, a prominent Polkadot parachain, has already integrated USDC as the native currency for its liquidity pools.

Lucas Vo, the co-founder of Centrifuge, expressed his enthusiasm regarding USDC's integration on Polkadot. He highlighted its significance for the DeFi sector and emphasized its importance for the Real World Assets ecosystem that Centrifuge is developing.

Circle emphasized that only Polkadot USDC natively issued on the Polkadot Asset Hub within the Polkadot ecosystem is supported by Circle Account and Circle APIs. Consequently, users need to move USDC from their Circle Account to a separate Polkadot Asset Hub wallet address before utilizing XCM.

For USDC transfers from Polkadot Asset Hub to other parachains through XCM, it's essential for users to first return the funds to the Polkadot Asset Hub using XCM before depositing them back into their Circle Account, as highlighted by 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.”

USDC, managed by Circle, stands as the sixth-largest cryptocurrency with a market capitalization of $26 billion. Its presence is already felt on other major blockchain ecosystems like Ethereum and Solana.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.