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Circle, the organization behind USDC, the second-largest stablecoin by market cap, has made a notable advancement by introducing USDC natively on Polkadot, a Layer 0 network developed by Ethereum co-founder Gavin Wood. This initiative is expected to significantly influence the DeFi landscape within the Polkadot network.
USDC is now being issued through the Polkadot Asset Hub, rendering it available to all Polkadot Layer 1s, commonly referred to as parachains. This integration is anticipated to boost liquidity and enhance institutional engagement within the Polkadot ecosystem.
Aaron Evans, Director of the Moonbeam Foundation, conveyed excitement regarding the launch of native USDC, stating, “Native USDC will help foster a more sophisticated and mature DeFi ecosystem.” The Moonbeam Foundation aims to support this rollout and assist in establishing this natively-minted stablecoin as an essential asset for various decentralized applications (dApps) on the Moonbeam parachain.
Polkadot, which gained attention during its eagerly awaited parachain auctions in November 2021, has seen a decline in visibility. The network offers shared security through its staking layer, accommodating 100-layer parachains. Parachain slots are assigned to projects on a lease basis, with teams vying to gather Polkadot’s native DOT tokens from their communities to use as collateral for slot bids.
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Nevertheless, the value of DOT has faced a considerable decline, currently trading at $4.15, representing a 92.5% drop from its peak in November 2021.
In spite of these obstacles, Polkadot has indicated that multiple parachain projects have already declared their integrations with USDC. For instance, Centrifuge, a protocol focused on tokenizing and financing real-world assets, has embraced USDC as the native currency for its liquidity pools, enabling users to invest assets using USDC or DAI.
HydraDX, a decentralized exchange based on an Omni pool, permits users to provide liquidity in USDC, while Interlay allows users to lend the stablecoin.
Circle’s extension of USDC onto the Polkadot network follows their announcement of intentions to deploy the stablecoin on six additional chains by year-end. Circle recently introduced USDC on Ethereum Layer 2s Base and Optimism, with plans to expand availability to Arbitrum, Near, and Cosmos.
This initiative underscores Circle’s dedication to enhancing the utility and accessibility of USDC across diverse blockchain ecosystems. It occurs amidst a reduction in the market capitalization of the USD, which has decreased from $56 billion in mid-2022 to $26 billion.
The post Circle Launches USDC Stablecoin Natively on Polkadot, Boosting DeFi Ecosystem appeared first on BitcoinWorld.
