Coinbase’s latest move sees the discontinuation of pUSDC withdrawals on Polygon, yet users retain the ability to deposit and withdraw USDC. This shift underscores evolving strategies in the cryptocurrency market.
In a significant development in the world of cryptocurrency, Coinbase, one of the leading cryptocurrency exchange platforms, has announced that it will no longer support the withdrawal of pUSDC, the wrapped version of the USDC (USD Coin) on the Polygon network. This decision comes as part of a strategic shift in Coinbase’s support for various digital assets, and it takes effect immediately. Despite this change, users will still have the ability to deposit and withdraw the native version of USDC on Polygon.
Coinbase Expands USDC: A Stablecoin Firmly Pegged To The US Dollar and Its Role On Polygon’s Layer-2 Network
USDC is a stablecoin firmly pegged to the value of the United States dollar. Each unit of USDC is always equivalent to one US dollar, making it a crucial asset for the cryptocurrency community. USDC is co-created and operated by Circle and Coinbase and operates on multiple blockchains, including Ethereum, Solana, and Polygon.
Polygon, in particular, has gained prominence as a Layer-2 scaling solution for Ethereum. It offers faster and more affordable transaction processing through its sidechain infrastructure. Additionally, Polygon extends its support to a variety of decentralized applications (DApps) and tokens, including MATIC, ETH, and USDC.
Coinbase’s prior initiative aimed to broaden the accessibility of USDC within the Polygon network. Initially, only the bridged iteration of the USDC token, known as USDC.e, was accessible on Polygon. Regrettably, this variant lacked endorsement from Circle, the primary distributor of this stablecoin.
However, in spite of these initial limitations, the adoption of USDC on Polygon witnessed a striking surge. Over the past two years, data indicates that USDC.e accumulated a staggering volume of almost $550 billion within the Polygon PoS ecosystem, contributing to nearly 1 out of every 9 transactions on the network. Simultaneously, the count of wallets on Polygon skyrocketed, reaching approximately 48.24 million wallets by September 2023.
Recently, Circle declared its intention to discontinue its support for the deposit and withdrawal of USDC.e bridged through Polygon PoS via its APIs, including Circle Mint and Express. Henceforth, only the native USDC will be endorsed on the Polygon network. It is noteworthy to mention that, as of the present moment, USDC stands as the sixth-largest stablecoin globally, boasting an impressive market value of $25.25 billion.
Nevertheless, it remains behind Tether, the third-largest stablecoin with a market value of $83.5 billion.This transition in Coinbase’s support for USDC on Polygon signifies a substantial transformation in the cryptocurrency landscape. Users must adjust to the updated withdrawal framework while still capitalizing on the benefits of USDC in the constantly evolving realm of digital finance.