Circle, the issuer of the stablecoin USDC, has announced that it will end support for its stablecoin on the Flow blockchain effective Sept. 3, 2024.
In a blog post on Aug. 5, Circle announced that its decision to end USDC (USDC) support on Flow (FLOW) is due to the blockchain network’s upcoming Crescendo upgrade. Minting of the U.S. dollar-pegged stablecoin will continue on Flow until Aug. 27, 2024, at 12 pm ET.
“Circle Mint customers, retail USDC holders, and non-Circle customers who hold USDC on Flow (Cadence) are highly encouraged to transfer from Flow to other blockchains ahead of the Sept. 3, 2024 deadline,” Circle wrote.
Flow’s Crescendo upgrade is expected on Sept. 4, 2024, at 5 am PT.
USDC on Flow
When the deadline rolls in, the stablecoin issuer will freeze all available USDC on Flow. A snapshot showing user business and institutional customer balances on the chain will help facilitate manual redemptions that will begin on Sept. 4, 2024.
Circle notes in its blog post that it only caters to business and institutional customers. As such, 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 said in the announcement published on Aug. 5.
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What next for users?
According to Flow’s update, the Flow team will issue a new wrapped token on the network in the next seven days.
The wrapped token will be backed by USDC bridged on the Ethereum (ETH) network, allowing holders of USDC on Flow’s Cadence release to easily swap them ahead of the Sept. 3 upgrade.
This means users can choose from several ways as they look to wrap and bridge assets ahead of the Crescendo upgrade, including depositing to Dapper Wallet, swapping tokens to Flow’s native token FLOW, or into the soon-to-launch wrapped USDC.
Alternatively, they can opt to wait for manual redemption after the Sept. 3 deadline.
Read more: Circle facilitates USDC swap for BlackRock’s tokenized fund
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