Binance, the world’s largest cryptocurrency exchange by trading volume, has announced that it will support the native USD Coin (USDC) on the Polygon network issued by Circle, a leading fintech company. USDC is a stablecoin that is pegged to the US dollar and redeemable on a 1:1 basis. USDC is widely used in the crypto industry for trading, lending, borrowing, and payments.
The Polygon network is a layer-2 scaling solution that aims to provide faster and cheaper transactions for Ethereum-based applications. Polygon uses a proof-of-stake (PoS) consensus mechanism and supports various interoperability protocols, such as bridges, sidechains, and rollups.
A cost effective option
Previously, Binance only supported the bridged version of USDC on the Polygon network, known as USDC.e. This version of USDC is created by locking the original USDC tokens on Ethereum and minting equivalent tokens on Polygon. However, this process requires users to pay gas fees on both networks and use a bridge service to convert between the two versions.
To simplify the user experience and reduce the costs, Binance will now support the native USDC on the Polygon network issued by Circle. This means that users can deposit and withdraw USDC directly from their Binance accounts to their Polygon wallets without using any bridge service or paying any gas fees.
Binance Users are advised to stay tuned for further updates
To distinguish between the two versions of USDC on the Polygon network, Binance will change the ticker of the bridged USD Coin (PoS) from USDC to MATICUSDCE. The deposits and withdrawals of MATICUSDCE will continue to be supported by Binance. However, Binance will suspend the deposits and withdrawals of the existing USDC on the Polygon network from October 25 at 06:00 AM (UTC) until further notice. This suspension will not affect other services, such as spot trading, margin trading, futures trading, Binance Earn, and Binance Pay.
Binance plans to release separate announcements regarding the deposit and withdrawal processes for native USDC on the Polygon network in due course. Users are advised to stay tuned for further updates and follow the instructions carefully. Binance also reminds users that trading cryptocurrencies involves significant risks and they should exercise caution when making investment decisions.