Coinbase Ceases pUSDC Withdrawals, Shifts Focus to Native USDC on Polygon

Coinbase Ends Support for pUSDC Withdrawals on Polygon

Coinbase, a leading cryptocurrency platform, announced on October 12, 2023, that it will no longer support withdrawals of pUSDC, the wrapped version of USDC on the Polygon network. However, pUSDC deposits will still be available, and users can withdraw the native version of USDC on Polygon instead.

Understanding USDC and Polygon

USDC is a stablecoin tied to the value of the US dollar. It is created and operated by Circle and Coinbase on different blockchains, including Ethereum, Solana, and Polygon. On the other hand, Polygon serves as a layer-2 scaling solution for Ethereum, offering faster and more affordable transaction processing through its sidechain infrastructure. It also supports decentralized applications (DApps) and tokens like MATIC, ETH, and USDC.

Coinbase’s Expansion of USDC Availability on Polygon

Coinbase recently announced that users can now deposit USDC tokens directly on the Polygon network. Previously, only the bridged version of the USDC token, known as USDC.e, was available on Polygon. However, this bridged version lacked support from Circle. Despite this limitation, the adoption of USDC on Polygon has significantly increased over the past 24 months.

Discontinuation of USDC.e Bridged Version

The number of wallets using USDC.e has risen rapidly, reaching around 48.24 million by September 2023. However, Circle will discontinue deposit and withdrawal support for USDC.e bridged over Polygon PoS across its APIs like Circle Mint and Express. From then onwards, only local USDC will be supported.

Hot Take: Coinbase Limits Withdrawals of pUSDC on Polygon

Coinbase’s decision to end support for pUSDC withdrawals on the Polygon network may impact users who relied on this feature. However, pUSDC deposits and native USDC withdrawals are still available. This move aligns with Coinbase’s goal to streamline its offerings and ensure a seamless user experience. As the adoption of USDC on Polygon continues to grow, it remains to be seen how this decision will affect the overall ecosystem.