Similarly to other blockchain integrations, the latest integration with Polkadot aims to maintain Circle as a major interoperable cryptocurrency as well as support low cost payments. The addition of Polkadot features trading, borrowing and lending on parachains like Centrifuge, HydraDX and Moonbeam.
Launched in 2020, Polkadot is a network of multiple independent blockchains, also referred to as parachains. Such blockchains operate in parallel with each other to allow for faster transactions while benefiting from Polkadot’s overall security and decentralization.
Related: Stablecoin depegging plagued USDC and DAI more than others: Analysts
The number of blockchains supported by USDC is now higher than the number of networks supported by rival stablecoin USDT, which supports a total of 11 networks at the time of writing. In August 2023, USDT issuer Tether stopped minting the stablecoin on three blockchains, including Bitcoin Omni Layer, Bitcoin Cash and Kusama. The firm cited lack of interest from users.
USDC issuer Circle has officially launched USD Coin on the Polkadot network, the firm announced on Sept. 19. According to the Circle’s website, Polkadot USDC is immediately available for developers and users as the stablecoin can now be transferred to parachains in Polkadot via the XCM protocol using Circle Account and Circle APIs.
According to the announcement, Polkadot USDC is natively issued on Polkadot Asset Hub, a common parachain that is designed for issuing, managing, and transferring digital assets across the Polkadot ecosystem.
Circle stressed that Circle Account and Circle APIs only support Polkadot USDC natively issued on Polkadot Asset Hub in the Polkadot ecosystem. This means that users must transfer USDC from their Circle Account to an external Polkadot Asset Hub wallet address prior to using XCM.