Sei Investments Company on Thursday warned its USDC.n holders to swap or migrate their digital assets to the Sei Network before the end of March 2026. The firm said the initiative will enable USDC.n users to avoid potential loss of access to their assets.
The financial service company revealed that its SIP-3 upgrade is expected to make Sei an EVM-only blockchain. The upgrade was accepted by the Sei ecosystem in 2025 and will make Sei cease supporting Cosmos-native assets such as USDC via Noble. Sei believes that the upgrade will make USDC.n inaccessible or cause it to lose its value on the Sei Network.
Sei’s SIP-3 upgrade comes in March
USDC.n is a stablecoin version of USDC via Noble on the Sei Network. Circle originally used the stablecoin on the Noble blockchain before bridging to Sei. At the time of publication, the firm revealed that there’s more than $1.4 million in USDC via Noble on Sei Network.
The Pennsylvania-based company stated that it expects its SIP-3 upgrade to go live on mainnet at the end of March 2026. Sei also said the timeline of the upgrade is subject to change and urged users to monitor official announcements updated on the deadline.
Sei has offered USDC.n users the option of swapping the token for USDC using Dragon Swap or Symphony. The swapping option only works for smaller volume conversions.
The firm acknowledged that there will be slippage in swapping USDC.n to USDC, but it may vary depending on market conditions and liquidity. Sei also maintained that it’s not endorsing DragonSwap or Symphony through the initiative, and users should do their own research before using any third-party service.
The financial service company also stated that users can migrate their USDC.n to native USDC on Sei Network using the Brrr tool. The option to migrate tokens will only work for larger-volume conversions.
Sei explained that the tool will transfer users’ USDC.n via Noble, then to Polygon, and finally back to the Sei Network using Circle’s CCTP. The firm also cautioned that the tool is provided without any warranties and may have risks, including technical failures, delays, and loss of funds during transfers.
Users can also manually migrate their USDC.n by using a bridge like Stargate. Sei proposed that users can target an intermediary chain where both CCTP v1 and v2 contracts are deployed, such as Base. Users can then use CCTP to mint native USDC back to Sei.
Sei warned that manually migrating tokens comes with additional risks, including loss of funds, technical errors, and security flaws. The firm urged its users to attempt migrating manually only if they are aware of the technical process and associated risks.
Sei also urged suppliers of USDC.n of DeFi protocols like Yei or Takara Lend, to first loosen their positions and then withdraw them before migrating to USDC. The firm warned that suppliers may face inability to access their assets if they fail to do so before the SIP-3 upgrade.
The financial service company reported that there’s roughly $194,000 of USDC.n supplied on Yei and around $13,000 supplied on Takara Lend.
USDC surpasses USDT in market growth
Cryptopolitan previously reported that USDC experienced outstanding growth last year, surpassing USDT for the second straight year. The stablecoin’s growth was driven by rising demand for regulated stablecoins as the Trump administration warmed to cryptocurrencies.
USDC recorded a 73% surge in market capitalization to $75.12 billion, while USDT increased by only 36% to $186.6 billion. USDC also increased by 77% in 2024, compared to USDT’s 50%.
JPMorgan analysts noted that USDC’s performance was driven by institutional demand for assets that meet regulatory guidelines. The analysts acknowledged that the approval of the GENIUS Act last year prompted several high-profile investment banks and institutions to explore blockchain-based dollars.
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Source: https://www.cryptopolitan.com/sei-network-upgrade-triggers-usdc-n/
