- Polygon PoS to initiate the transition from bridged USDC to native USDC, starting October 10, enhancing the liquidity and functionality within its ecosystem.
- The move is coupled with the introduction of Circle’s Cross-Chain Transfer Protocol (CCTP) aiming to facilitate seamless USDC transactions across multiple chains.
The saga of USDC (USD Coin) unfolds a new chapter as Polygon PoS (Proof of Stake) is set to roll out native USDC, a transition earmarked to begin on October 10. This move is geared towards gradually phasing out the bridged USDC derived from Ethereum, paving the way for a more harmonized ecosystem tailored for apps, developers, and users.
October 10th – save the date. Native $USDC will launch on Polygon PoS.
Native USDC, issued by @circle, will be the official form of USDC for the Polygon PoS ecosystem.
– Fully reserved & always redeemable 1:1 for US dollars
– Supported by Circle Account & its APIs… https://t.co/yCSf4gmaab
— Polygon (Labs) (@0xPolygonLabs) September 28, 2023
USDC’s New Abode: Polygon PoS
Circle, the issuer of USDC, has orchestrated this transition to make USDC native to Polygon PoS, thereby becoming the ecosystem’s official USDC standard. This transition reflects a long-term strategy to enhance the liquidity of native USDC, eventually replacing the current bridged USDC liquidity channeled via the Polygon PoS Bridge from Ethereum.
Unpacking the Benefits of Native USDC
Native USDC comes with a plethora of advantages:
- It maintains a 1:1 redeemable value for US dollars, offering a stable and trustworthy transactional medium.
- Institutional on/off-ramps are enabled, streamlining the flow of transactions.
- Anticipated support by the Cross-Chain Transfer Protocol (#CCTP) to eliminate bridge withdrawal delays, further smoothing the transition.
As native USDC ascends, the Ethereum-bridged version on block explorers like PolygonScan will dawn a new identity, USDC.e, aligning with the outreach to ecosystem apps for analogous amendments in their user interfaces and documentation.
Circle’s Interface Adaptations
Post-launch, for a span of 30 days, Circle Account will cater to both the native and bridged USDC, albeit, from November 10 onwards, the support for deposits and withdrawals of bridged USDC.e will cease, enshrining native USDC as the ecosystem’s focal point. This development necessitates adjustments in the API integrations for Circle customers to align with the native USDC on Polygon PoS.
The Road to Liquidity Migration
Post-transition, efforts will concentrate on ensuring a fluid migration from USDC.e to USDC, with no immediate alterations to the Polygon PoS Bridge’s operation. Furthermore, the introduction of Circle’s Cross-Chain Transfer Protocol (CCTP) to Polygon PoS post-native USDC launch is aimed at enabling rapid USDC transactions across Ethereum and numerous other supported chains, significantly reducing withdrawal delays.
As the countdown to October 10 begins, the enthusiasm within the Polygon PoS ecosystem is palpable. The launch of native USDC is perceived as a significant stride towards fostering a more streamlined and robust environment for all stakeholders involved.