Circle, the issuer of the stablecoin USDC, has announced that it will end support for its stablecoin on the Flow blockchain effective September 3, 2024.

In a blog post on August 5, Circle stated that the decision to end USDC support on Flow is due to the blockchain network’s upcoming Crescendo upgrade. Minting of the U.S. dollar-pegged stablecoin will continue on Flow until August 27, 2024, at 12 pm ET.

“Circle Mint customers, retail USDC holders, and non-Circle customers who hold USDC on Flow are highly encouraged to transfer from Flow to other blockchains ahead of the September 3, 2024 deadline,” Circle wrote.

Flow’s Crescendo upgrade is set for September 4, 2024, at 5 am PT.

USDC on Flow

When the deadline arrives, the stablecoin issuer will freeze all available USDC on Flow. A snapshot showing user business and institutional customer balances on the chain will assist in manual redemptions starting on September 4, 2024.

Circle notes that it primarily caters to business and institutional customers. Flow has provided an explanation of what’s next for its USDC holders and non-Circle customers with balances on the blockchain.

“Effective September 3, 2024, at 3 a.m. ET, ahead of the Crescendo network upgrade, Circle will cease support for USDC on Cadence, as EVM-based ERC-20 USDC will become naturally compatible across the entire Flow ecosystem. Circle and Flow will offer dedicated resources and support to facilitate this process, ensuring a smooth transition for all users,” Team Flow stated in the announcement published on August 5.

What Next for Users?

According to Flow’s update, the Flow team will issue a new wrapped token on the network within the next seven days. This wrapped token will be backed by USDC bridged on the Ethereum network, allowing holders of USDC on Flow’s Cadence release to easily swap them ahead of the September 3 upgrade.

This means users have several options for wrapping and bridging assets before the Crescendo upgrade:

  • Deposit to Dapper Wallet
  • Swap tokens to Flow’s native token FLOW
  • Convert into the soon-to-launch wrapped USDC

Alternatively, they can wait for manual redemption after the September 3 deadline.

Stay updated with the latest cryptocurrency news and trends on Global Crypto News.

Post Views: 3