In response to community input, native USDC was launched on Polygon PoS in October 2023. The decision was driven by the expectation that adopting this conventional approach would increase user exposure and optimize capital utilization.

USDC.e, short for "Bridged USDC from Ethereum on Polygon PoS," is a wrapped version of Ethereum's native token.

On the other hand, the introduction of native USDC on Polygon PoS is expected to enhance liquidity within the Polygon ecosystem and streamline transactions. By integrating with Polygon PoS, users gain direct access to USDC, streamlining workflows and enhancing value for users.

Over the past two months, adoption of native USDC has been growing across the ecosystem, although the transition process is not yet complete. DeFi products, NFT spaces, and bridges are all playing a role in encouraging users to gradually shift from the bridged version of USDC to the native one. Once the transition is fully implemented, Polygon PoS is expected to attract even more attention and approval from users.

The benefits of the native USDC model over the bridged model are significant. For instance, native USDC can be directly minted and redeemed on Polygon PoS at a 1:1 ratio for US dollars, with full reserves and support from Circle Account and its APIs. By utilizing the Cross-Chain Transfer Protocol (CCTP), users can achieve greater efficiency in blockchain technology and eliminate bridge withdrawal delays.

While there is currently no connection between Polygon PoS and the AggLayer, plans are underway to expand it into a zkEVM validium. The initial phase of the AggLayer involves a unified bridge connecting multiple chains to the AggLayer, enabling seamless token transfers between chains and facilitating standard token operations on other networks.

With native USDC on Polygon PoS, users have access to more capabilities and improved visibility, making it the preferred scalability model compared to a bridging architecture.