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USDC is expanding its 15th network natively

The company Circle, which issues the stablecoin USD Coin (USDC), announced the launch of the cryptocurrency on Polygon, the sidechain of Ethereum.

In this way, USDC is available on the aforementioned network without the need for “bridges”. Companies and developers can build apps using the stablecoin on Polygon to appeal to the general public and provide them with “near-instant, near-free transactions around the world,” says a release the company.

This is exactly one of the properties of Polygon Transaction fees can even cost less than a cent. This is different from Ethereum, a network that is much more expensive.

Comparing various features of Polygon and Ethereum – Source: Coingecko (updated April 2023)

Prior to this move by Circle, the stablecoin was already present on the Ethereum sidechain with the USDC.e token, a “wrapped” version of the cryptocurrency. It is working Locking stablecoin tokens in smart contracts on other networks and spend the same number of tokens on Polygon.

For example, a user could use USDC.e to participate in decentralized finance (DeFi) protocols on Polygon, even if those protocols do not natively support USDC.

“Wrapping” a token to transport it to another network poses additional risks as the smart contract in which it is wrapped could be hacked and the currency wrapped on the other network would no longer have any value. For safety reasons It is always convenient to use native tokens, that is, they are issued directly on the network where they are used.

More specifically, Circle announced that the “wrapped” token USDC.e Polygon will no longer be supported on November 10th. After this date, only native USDC will be accepted in the future.

“You should not attempt to send USDC.e as it may not be recoverable and could result in a loss of funds.”

Circle, issuing company of the USDC stablecoin.

The Circle company was until now has expanded USDC natively to 15 networks, including Ethereum, Avalanche, Flow, Solana, Optimism and Base. The last two were recorded in early September last year, as CriptoNoticias reported.

This announcement, has not had a positive impact on the market based on the price of MATICnative token of the Polygon network.

MATIC price in the last 24 hours. Source CoinMarketCap.

He MATIC price fell 2% in the last 24 hours. The price of the asset increased from $0.52 to $0.51 during this period.

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