Circle has launched USDC, the second-largest stablecoin by market cap, natively on Polkadot, a “Layer 0” network founded by Ethereum co-founder Gavin Wood.
Circle has begun issuing USDC through the Polkadot Asset Hub, making it accessible to all Polkadot Layer 1s, also known as parachains. Polkadot said the integration will strengthen liquidity and enable greater institutional participation in its ecosystem.
“Native USDC will help foster a more sophisticated and mature DeFi ecosystem,” said Aaron Evans, Director of the Moonbeam Foundation. “The Moonbeam Foundation is excited to support the launch and help make this natively minted stablecoin a key resource for the many dApps on the Moonbeam parachain.”
Polkadot has lost traction since holding its hyped parachain auctions in November 2021.
Polkadot offers shared security in the form of its staking layer, which supports up to 100 layer parachains. Parachain slots are assigned to projects on a leasing basis, with teams competing to collect Polkadot’s native DOT tokens from their communities to deposit as collateral for a slot’s tender.
However, DOT last changed hands for $4.15, down 92.5% from its all-time high set in November 2021.
Polkadot said several parachain projects have already announced integrations for USDC.
Centrifuge, a protocol for tokenizing and financing real-world assets, has made USDC the native currency of its liquidity pools. Centrifuge users can now fund assets with either USDC or DAI.
“We are excited to see USDC natively on Polkadot,” said Lucas Vogelsang, co-founder of Centrifuge. “It’s an important step for DeFi and an even bigger one for the real world assets ecosystem that Centrifuge is building.”
Users can also deploy USDC on HydraDX, an omnipool-based decentralized exchange, or lend the stablecoin on Interlay.
Rapid expansion
USDC’s Polkadot launch comes about a month after Circle announced plans to deploy the stablecoin on six new chains by the end of the year.
Circle quickly followed with deployments on the leading Ethereum Layer 2s Base and Optimism, with plans to launch USDC on Arbitrum, Near and Cosmos as well.
The moves follow a long-term decline in the U.S. dollar’s market capitalization, which fell by more than half from $56 billion in mid-2022 to $26 billion today.
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