Circle on October 10, 2023, officially launched the Native USDC, encouraging users to switch from the Bridged USDC.e to the Native USDC because of the more efficient and low-cost decentralized applications (dApp) integration.
The integration of the Native USDC on Polygon will also allow a much smoother user experience. This also allows the capability to develop decentralized applications in various domains such as payments, remittances, and trading.
With this in mind, the top question that pops up would be, what happens to your USDC in PDAX?
Starting November 10, 2023, all PDAX users holding USDC assets in the Polygon network can now withdraw their USDC as Native USDC.
All of the users’ Bridged USDC (USDC.e) are now automatically converted to the Native USDC.
What’s Native USDC?
The transition from USDC.e to Native USDC makes all USDC issuances by Circle native to the Polygon PoS. With this change, Native USDC liquidity will eventually grow and replace the USDC.e liquidity that comes from Ethereum through the Polygon PoS Bridge.
This native integration enhances the user experience by eliminating the challenges associated with transferring stablecoins between different blockchains. Users and developers can easily utilize USDC on Polygon, directly tapping into the scalability features offered by Polygon technology.
What Makes Native USDC Great?
- 1:1 redemption for US dollars, with full reservation at all times
- Backed by Circle Account and its APIs
- Facilitates institutional on/off-ramps
- Anticipates future support from Cross-Chain Transfer Protocol (CCTP) to eliminate delays in bridge withdrawals
Bridged USDC vs Native USDC
Circle enables the seamless integration of USDC on emerging blockchain networks, providing developers with a reliable and secure foundation for their projects. The Native USDC, officially issued by Circle, maintains a 1:1 redeemable value for US dollars.
On Polygon PoS, there is also a variant called USDC.e, which is a bridged version from Ethereum. It's essential to note that USDC.e is not issued by Circle.
Bridged USDC from Ethereum
Token Symbol: USDC.e
Token Address: 0x2791bca1f2de4661ed88a30c99a7a9449aa84174
Native USDC from Circle
Token Symbol: USDC
Token Address: 0x3c499c542cef5e3811e1192ce70d8cc03d5c3359
How will the USCD.e to Native USDC conversion happen?
The developers of the ecosystem will devise a way to guarantee a smooth transition from USDC.e to USDC on Polygon PoS with their high-level work. It is ensured that the transition will not affect the current Polygon PoS Bridge, and that it will remain to operate as usual.
To ensure a flawless developer and user experience, Circle plans to integrate CCTP into Polygon PoS after the official launch of the Native USDC. After that, USDC will be enabled to move to and from Ethereum natively in mere minutes, without the usual delays.
How will PDAX support the transition?
PDAX will be adopting the transition in its platform by converting all Bridged USDC to Native USDC as well. Starting November 10, all PDAX users can already start with their USDC deposits and withdrawals in Polygon.
PDAX will no longer support Bridged USDC on its platform. Any form of deposits after November 10 will no longer be credited to your account and may be unrecoverable.
What happens after the conversion?
You can already continue trading with Native USDC, instead of USDC.e using your converted assets. All withdrawals and deposits for Native USDC will be available with other supported third-party applications.
To ensure secured transactions, make sure to transact with accounts that also support the Native USDC.
Will I lose my money after the USDC.e - Native USDC conversion?
No. All of your Bridged USDC (USDC.e) inside your wallet will be converted to Native USDC 1:1.
Do I need to do anything to ensure my USDC.e - Native USDC conversion?
PDAX has converted all your Bridged USDC (USDC.e) assets to the Native USDC. Your wallet balance for USDC in Polygon should be the same.
I have questions. Who do I ask?
For any inquiries or needed assistance, you may contact one of our customer success representatives through this link.