Circle, a fintech firm, is adding US Dollar Coin (USDC) to the Polygon blockchain. It will therefore be more convenient for users to use Polygon USDC instead of bridging their USDC from Ethereum’s mainnet to Polygon. The Ethereum-Polygon bridge is cumbersome for many because it suffers from delays and incurs Ethereum mainnet gas fees.
The addition of Polygon USDC support to the Circle Account and Circle API further expands USDC’s interoperability, fostering wider adoption of dollar-backed digital currencies online.
In today’s world, USDC exists as a multichain stablecoin that supports Ethereum’s mainnet, Solana, Algorand, Stellar, Avalanche, Flow, Hedera, Tron, and now Polygon.
In a statement, Circle CEO and co-founder Jeremy Allaire explained why his company is adding USDC to Polygon, which is home to roughly 20,000 decentralized apps.
Circle added USDC shortly after Tether introduced its stablecoin USDT to Polygon in May.
The Polygon platform provides businesses and developers with a way to build in an established and liquid ecosystem with faster settlement times and lower costs. Circle recently disapproved of the idea of a U.S. central bank digital currency (CDBC), claiming that it would “destabilize” banking. According to the company, CBDCs could create “potential domestic flight to quality or flight to safety problems, which could lead to instability in the two-tiered banking system.”
Although Polygon-native USDC may be new, USDC isn’t; in 2018, venture capitalists invested 110 million dollars into its creation.