Circle warns Polkadot USDC users not to deposit USDC transferred via XCM from non-Polkadot Asset Hub parachains.
USD Coin (USDC), the second-largest stablecoin by market cap following Tether (USDT), is extending its reach across various blockchain networks, with its latest launch on Polkadot.
Circle, the issuer of USDC, officially announced the introduction of USD Coin on the Polkadot network on September 19. According to Circle’s website, Polkadot’s USDC is immediately accessible to both developers and users. The stablecoin can now be moved to Polkadot’s parachains using the XCM protocol via Circle Account and Circle APIs.
The announcement clarified that Polkadot’s USDC is natively issued on Polkadot Asset Hub, a common parachain engineered to create, manage, and transfer digital assets across Polkadot’s ecosystem.
Circle emphasized that only Polkadot-native USDC issued on Polkadot Asset Hub is supported by Circle Account and Circle API within the Polkadot ecosystem. This means users must first transfer USDC from their Circle account to an external Polkadot Asset Hub wallet address before utilizing XCM.
When transferring USDC from Polkadot Asset Hub to other parachains via XCM, users are advised to move the funds back to Polkadot Asset Hub via XCM before depositing them into their Circle account. Circle added, “Do not attempt to deposit USDC transferred via XCM from a parachain other than Polkadot Asset Hub into your Circle account, as it may not be recoverable and could result in a loss of funds.”
The Polkadot compatibility adds a new dimension to the dollar-pegged stablecoin. With this latest addition, USDC now supports a total of 14 different blockchain networks, including Ethereum, Tron, Stellar, and Solana, among others.
Like other blockchain integrations, the recent Polkadot collaboration aims to solidify Circle’s position as a key interoperable cryptocurrency while also facilitating low-cost payments. The Polkadot addition enables trading, lending, and borrowing on parachains like Centrifuge, HydraDX, and Moonbeam.
Launched in 2020, Polkadot is a network of multiple independent blockchains, also known as parachains. These blockchains operate in parallel to enable faster transactions while benefiting from Polkadot’s overall security and decentralization.
USDC now supports more blockchains than its rival stablecoin USDT, which currently supports a total of 11 networks. In August 2023, Tether, the issuer of USDT, ceased minting the stablecoin on three blockchains—Bitcoin Omni Layer, Bitcoin Cash, and Kusama—citing lack of user interest.