Circle launched stablcoin USDC on Polygon blockchain, which uses Proof-of-Stake consensus model. This will speed up transactions and simplify the conversion of fiat currencies to USDC.
As Circle said in its blog post, companies and developers using Polygon will be able to make deposits to USDC and withdraw them using a Circle account and API. By directly accessing USDC on Polygon, settlement times will be significantly reduced and transaction costs will be reduced. With Polygon’s support, users will be able to convert fiat currencies to and from USDC in seconds, the company says.
Polygon is known as the second-tier solution for scaling the Etherium network. This blockchain is used to run decentralized applications (dApps) built for Etherium, so developers can easily scale their dApps to run on a faster, more efficient infrastructure. This opens up increased access to Web3, decentralized finance (DeFi), and non-interchangeable tokens (NFT).
As of May 2022, Polygon has launched more than 19,000 dApps and has more than 2.7 million monthly active wallets.
Circle co-founder and CEO Jeremy Allaire called Polygon “an attractive entry point” for organizations and developers into an established and liquid ecosystem with faster settlements and lower costs.
The launch of USDC on Polygon came amid declining confidence in decentralized stablecoins after the collapse of the UST algorithmic stackcoin. Meanwhile, USDC showed resilience after the “negative footprint” left by UST. Thus, on June 8, the market capitalization of USDC reached a record level of $53.8 billion.