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USDC goes live on Polkadot’s Asset Hub

source-logo  cryptonewsz.com 20 September 2023 10:30, UTC

Polkadot has announced that USDC is live in its Asset Hub, enabling parachains to access the stablecoin without having to leverage the capabilities of a bridge. It is likely to contribute to liquidity for parachains. USDC is a stablecoin that is pegged to the US dollar in a 1:1 ratio. It carries the flag of being the second-largest stablecoin in terms of market capitalization. The figure for the same was $26,009,536,500 at the time of drafting this article.

In addition to boosting liquidity, USDC on Polkadot’s Asset Hub will ensure institutional traders have access to the ecosystem most conveniently. USDC will also become a native token for most of the parachains that are in the Polkadot ecosystem.

The first one to adopt USDC is Centrifuge, with Parachain announcing that the stablecoin will be its native currency for liquidity pools. Others on the list are HydraDX, Moonbeam Network, and Interlay. Adding USDC to the ecosystem allows Centrifuge to offer access to the stablecoin along with DAI, making it an innovative way for users to access financing on the chain. Issuers will also benefit from the implementation, as USDC will provide convenient off-and-on ramps.

Lucas Vogelsang, the co-founder of Centrifuge, has expressed his excitement about having USDC on Polkadot. Lucas has called this an important step for the Decentralized Finance and Real World Assets ecosystem. The latter is under construction, being crafted specifically for the use of USDC.

Jakub Gregus from HydraDX has expressed confidence in having USDC on the network. The co-founder of the platform has said that having USDC will strengthen liquidity that is native to the network and bring down friction in the user experience and operations of DAO.

Aaron Evans from Moonbeam Network believes that having USDC native to the parachains will bring sophistication and maturity to the DeFi segment. Aaron is the Director of the Foundation and has further extended support for launching USDC at Polkadot Asset Hub. Evans has said that the natively-minted stablecoin has the potential to become a key resource for many decentralized applications that Moonbeam hosts.

Interlay has stated three use cases for USDC on the network. These include the token’s role as collateral, the token’s ability to be borrowed and lent, and the possibility for DeFi users to participate in liquidity pools.

USDC will serve as collateral for the wrapped Bitcoin token, which is represented as iBTC. It will be in the Interlay Vault. Interlay DeFi Hub will host the lending and borrowing activity for USDC on the network. Finally, users will have a chance to increase participation by owning a portion of the liquidity pool.

It opens new opportunities, said Sota Watanabe, the founder of Astar Network. Sota has said that they will add USDC as the official USDC asset to allow the members to leverage the digital asset in the ecosystem. Polkadot hosting USDC is indeed a great step, for the ecosystem offers composability, flexibility, and security for a better transition to the updated web.