KuCoin Opens Polkadot Network Deposit Service for USDC

US-based crypto exchange platform KuCoin has opened the Polkadot network deposit service for the widely-used USD Coin (USDC), the second-largest stablecoin by market capitalization after Tether.

Currently, only USDC deposits are available on KuCoin, but Polkadot developer Velocity Labs is actively working to enable withdrawals soon.

Velocity Labs is dedicated to transforming the Polkadot ecosystem into a hotspot for DeFi. As an ecosystem builder and venture studio, the firm focuses on creating the infrastructure, tools, and products necessary to promote DeFi applications within Polkadot.

USDC has emerged as the most issued native stablecoin on Polkadot, though gaining easy access to Circle’s flagship product has presented challenges for wider adoption.

This development follows just a year after Circle introduced USDC to the Polkadot ecosystem of parachains, broadening the stablecoin’s native availability across more blockchains.

Polkadot is known for its interoperability, connecting multiple application-specific blockchains referred to as parachains.

Circle issued the native version of USDC on the Polkadot Asset Hub, a “system parachain” designed for asset issuance in the ecosystem. This hub allows the stablecoin to be transferred across parachains via the XCM protocol, granting all interconnected parachains and their users access to the dollar-backed stablecoin.

Similar to other blockchain integrations, Polkadot support maintains USDC as an interoperable cryptocurrency while facilitating low-cost payments.

USDC ranks as the second-largest stablecoin in the crypto market, with a market capitalization of approximately $34 billion. In comparison, the largest stablecoin, Tether’s USDT, has a market cap of $117 billion.

USDC issuer Circle operates as a regulated money transmitter, holding licenses throughout the United States. This regulatory compliance was a critical consideration for KuCoin, particularly following charges against the exchange and its founders in March by U.S. federal prosecutors for violating anti-money laundering laws. The CFTC has also filed a parallel civil action against KuCoin, alleging illegal operations of a digital asset derivatives platform.