Native USDC is launching on Polygon PoS on October 10th

Circle, the peer-to-peer payment technology company that manages USDC, has just announced that the native USDC stablecoin will launch on Polygon PoS on October 10, 2023. This will mark the beginning of an important switch from bridged USDC to native USDC for users, developers, and ecosystem apps on Polygon PoS.

Following the transition, deposit, and withdrawal of bridged USDC via Circle Account and its APIs will be discontinued from November 10th. Users now have enough time to adapt to the coming changes. This could also serve as a boost for the Polygon PoS ecosystem and Polygon (MATIC) price, which is up 3.10% today.

Series of Well-Intentioned Changes

In the coming weeks, Circle and Polygon PoS have a few changes that network participants should be aware of. From October 10, Circle will start issuing USDC that will be native to the Polygon PoS. This set of stablecoins will become the official form of USDC in the polygon ecosystem.

For a while, the native USDC and bridged USDC will co-exist in the ecosystem. However, native USDC liquidity will grow with time, eventually replacing the bridged USDC liquidity that comes from Ethereum, through the Polygon PoS Bridge.

Bridged vs. Native (USDC.e vs. USDC)  

Before the actual launch date, Ethereum-bridged USDC on PolygonScan and other block explorers will be renamed USDC.e. Ecosystem apps will also be informed and made to make the same change on their app user interface (UI) and documentation.

Changes to Circle’s API Chain Codes

Circle customers will also need to make some changes in the coming days. Those who utilize Circle Account and its APIs will have to adjust their API integration to work with native USDC on Polygon PoS from the launch day. At the same time, their API currency codes are the same, bridged, and native USDC(s) utilize different API chain codes.

Liquidity Migration for Developers

Since there are no plans for immediate changes to the Polygon PoS Bridge, it will continue to function normally after the launch. However, developers will be required to work towards a smooth transition.

Circle plans to introduce Cross-Chain Transfer Protocol (CCTP) to the Polygon PoS after the launch of the native USDC. This will enable the free and fast movement of USDC to and from Ethereum, as well as other supported chains. Withdrawal delays will be completely eliminated. These will improve the developer and user experience.

Transition Timeline – Circle Account and its API will Only Support Native USDC

From the October 10 launch date, Circle Account and its APIs will support withdrawal and deposit of both native USDC and bridged USDC.e for 30 days. From November 10, it will discontinue support for withdrawal and deposit of bridged USDC.e on all accounts and APIs, including Express.

Users are expected to keep the dates in mind. To avoid losses of funds, users must stop sending bridged USDC.e to Circle Accounts after the November 10 deadline, as it may not be recoverable.

Since the announcement of Polygon 2.0, several changes have been announced. These are changes that are expected to have a meaningful positive impact on the entire Polygon ecosystem.

Wrapping Up

Native USDC on Polygon PoS will offer several benefits. Unlike the bridged version, it is fully reserved and will always be redeemable 1:1 for US dollars. The transition from bridged to native USDC will also see the integration of CCTP to support cross-chain interoperability. This will also eliminate bridge withdrawal delays.

Users should be excited about what native USDC means for the Polygon PoS ecosystem. They should also prepare for the coming changes to fully enjoy the benefits it will bring. This could also be a good time to monitor Polygon (MATIC) price prediction as changes often bring more significant opportunities.