Binance is introducing support for USDC on the Polygon network, aiming to streamline transactions for businesses using Polygon. Deposits and withdrawals of the current USDC token bridged from Ethereum will be temporarily suspended on October 25, with a rebrand to MATICUSDCE, coexisting with the launch of USDC on Polygon.
This move aligns with Polygon’s shift towards corporate applications, thanks to its low fees and speed, which will attract over 79 companies in 2022. Companies can use USD Coin through Circle’s APIs, reducing risks for clients and merchants.
Binance’s support for native USDC on Polygon may boost trading volumes amid reduced activity ahead of a potential Bitcoin ETF. Binance could also leverage this to attract corporate clients, a strategic response to losing partners and facing investigations in various regions.
Stablecoins like USDC play a crucial role in reducing risks for both clients and merchants. They achieve this by locking in an exchange rate between the stablecoin and the cryptocurrency used by the client to pay for goods or services.
Earlier this year, Circle introduced a cross-chain protocol that facilitates USDC transfers across different blockchains. This move aligns with the broader industry trend of enhancing blockchain usability, as highlighted by Dante Disparte, Circle’s Chief Strategy Officer.
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