Binance is offering support for USDC on Polygon, the native network for US dollar-based stablecoin issued by Circle Internet Financial (Circle). The exchange will announce the opening deposits and withdrawals on a separate date.
Deposits and withdrawals of its existing USDC token bridged from Ethereum, will be suspended on Oct. 25, and will resume later. The old token will assume a new ticker, MATICUSDCE, and will continue to be supported after the launch of USDC on Polygon.
Binance Can Harness Polygon Brands
Trading for the bridged token will continue to operate in parallel with the new Polygon token. According to Circle, the advent of native USDC will enable businesses using Polygon to transact seamlessly with each other.
Polygon is an Ethereum sidechain whose emphasis has increasingly shifted toward corporate applications. Polygon’s low fees and speed have attracted over 79 companies since the start of 2022.
Companies can use the new USD Coin through Circle application programming interfaces (APIs). Stablecoins lower the risk for clients and merchants by locking in an exchange rate between the stablecoin and the cryptocurrency the client uses to pay for goods or services.
Circle launched a new cross-chain protocol earlier this year to enable USDC transfers across different blockchains. The company’s Chief Strategy Officer, Dante Disparte, signaled the move as part of an industry shift to improve the usability of blockchains.
Read more: What Is a Stablecoin? A Beginner’s Guide
Exchange Activity Plummets in September
Binance support for native USDC can attract new volumes as exchange activity drops off ahead of an anticipated Bitcoin exchange-traded fund (ETF). Last week, derivative traders experienced dramatic liquidations as Bitcoin’s price rose to $30,000 amid rumors of an anticipated ETF approval.
Binance may also use the new native USDC coin to attract corporate clients after losing several corporate partners in the past year. The exchange faces investigations in multiple regions, including the US, France, and Australia.
Read more: 7 Best Binance Alternatives in 2023
It could also consider a larger role in stablecoin remittances, a process that has been the subject of several notable experiments in the past year. The Stellar Foundation tested the exchange of US dollars for Colombian pesos earlier this year, while South Korea’s oldest bank, Shinhan, wants to exchange fiat between different regions in southeast Asia.
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