Stablecoin issuer Circle has launched USD Coin on the Polkadot Asset Hub, allowing users to access their USDC assets on DOT parachains via the XCM protocol.
In the press release, Circle stated that releasing its USD-pegged stablecoin on Polkadot will pave the way for near-instant global payments, 24/7 trading, parachain lending, and other crypto innovations.
1/ 🚨 The wait is over!— Polkadot (@Polkadot) September 19, 2023
Today, @circle has enabled #USDC, the second largest stablecoin by market cap, on Polkadot!
Now, every parachain in Polkadot’s ecosystem can access USDC natively without the need of a bridge.
Learn more in the 🧵 below 👇 pic.twitter.com/9MHqb3aRD5
As revealed by Polkadot’s tweets, multiple parachains have expressed interest in adopting USDC. Parachains refer to interoperable layer-1 blockchains that run parallel to the network’s primary blockchain (called the Relay Chain) and are a feature exclusive to the Polkadot and Kusama ecosystems.
Centrifuge, a platform best known for its on-chain credit mechanisms that facilitate transparent and secure borrowing of crypto tokens, intends to make USDC the native token for its liquidity pools. In the words of its founder, Lucas Vogelsang,
“We are excited to see USDC natively on Polkadot. It is an important step for DeFi, and an even bigger one for the Real World Assets ecosystem that Centrifuge is building.”
Earlier in August, Circle announced its plans to launch USDC on six blockchains, including Base, Cosmos Hub (ATOM), NEAR Protocol (NEAR), Optimism (OP), Polygon PoS (MATIC), and Polkadot. So far, the firm has finished integrating its stablecoin with five out of six protocols and plans to natively bridge USDC on the Polygon PoS chain in October.