Altcoin project Sei Network warned USDC.n holders circulating on the network to switch to “native USDC” before the major protocol update planned in March. The warning comes as Sei is preparing for the SIP-3 upgrade, which will radically change its architecture, and is of particular concern to investors using older version stablecoins. According to network data, the USDC via Noble balance on Sei decreased rapidly, while the project team drew attention to possible access and value loss risks. The statement reveals that the transformation in the stablecoin infrastructure may have critical consequences not only technical but also concerning user funds.
USDC.n Era Is Nearing Its End on Sei Network
In the statement made by Sei Network, it was stated that the stablecoin, known as USDC.n and bridged to the Sei network via Noble, may lose its functionality after the upcoming SIP-3 upgrade. USDC.n is defined as the old version USDC issued by Circle on the Noble blockchain and migrated to Sei. With Circle later issuing native USDC on Sei, USDC.n ceased to be the main stablecoin within the network.
According to the project team, the USDC via Noble balance on Sei has decreased to approximately 1.4 million dollars. The decline in balances, which exceeded several million dollars in previous months, shows that users are increasingly turning to the “canonical” version of Sei. Officials have clearly emphasized that USDC.n assets run the risk of becoming inaccessible or losing value after the SIP-3 upgrade.
While Sei recommends DragonSwap and Symphony platforms for small-volume transactions during the conversion process, he offers a more complex solution for high-volume users. This method envisages a mass transfer from Noble to Polygon and then returning to the Sei network via Circle’s CCTP infrastructure.
SIP-3 Upgrade and Its Impact on Stablecoin Ecosystem
The SIP-3 upgrade, scheduled to go live in March, aims to transform Sei Network into an EVM-only chain. As part of the update, CosmWasm and Cosmos-based native assets will be phased out. While this strategic change simplifies the technical architecture of the network, it makes an adaptation process mandatory for some assets associated with the Cosmos ecosystem.
Noble, which is at the origin of USDC.n, operates as an asset issuance chain specifically designed for the Cosmos/IBC ecosystem. Noble serves as a bridge to Cosmos-based networks for issuers such as Circle, Hashnote Labs, Monerium and Ondo Finance. Circle Ventures’ investment in Sei at the end of 2023 and the partnership established with Noble shaped USDC’s main distribution line in the Cosmos universe.
In this context, Sei’s new EVM-focused structure highlights the native USDC directly issued by Circle, while pushing the USDC.n coming through Noble to a secondary position. The project’s warning makes clear how critical technical upgrades can introduce timing and compliance risks for stablecoin users.
