Sei Issues Final Warning: USDC.n Holders Must Migrate to Native Version Before March 2026 Deadline

The clock is ticking for Sei network users holding a specific version of the popular stablecoin. The blockchain platform has drawn a hard line in the digital sand, mandating a complete migration from its bridged USDC.n asset to the native version. The cutoff? The end of March 2026. Ignore it, and your tokens risk becoming stranded in a protocol backwater.

The Great Migration Mandate

This isn't a gentle suggestion—it's a protocol-level imperative. The bridged USDC.n, a wrapped representation of the Circle-issued dollar token, is being phased out in favor of its natively issued counterpart. The move centralizes liquidity, streamlines transactions, and cuts out the middleman mechanics of the bridge. For users, it means swapping one digital IOU for another, but with the full backing of the upgraded Sei infrastructure.

Why the Hard Deadline?

Blockchains hate legacy baggage. Supporting multiple versions of the same asset splits liquidity, complicates smart contracts, and creates unnecessary security surface area. By sunsetting USDC.n, Sei's engineers are forcing a clean break—consolidating the ecosystem onto a single, robust standard. It's a classic tech upgrade play: deprecate the old to make way for the new, even if it gives a few portfolio managers an extra calendar reminder to set.

The User Action Plan

Holders need to move—and the process is typically a few clicks within a compatible wallet or decentralized exchange on Sei. The swap is a 1:1 value transfer, but timing is critical. Wait until the final weeks, and you might be jostling in a last-minute panic with everyone else who forgot—a digital version of rushing to the post office at midnight on Tax Day, but with more irreversible transactions.

A Nudge Toward the Future

This migration is a microcosm of crypto's endless evolution. Chains mature, standards rise, and yesterday's clever bridge becomes tomorrow's technical debt. For Sei, it's a step toward a more efficient, self-contained financial stack. For the industry, it's another reminder that in decentralized finance, your assets are only as safe as your attention to governance announcements—and that in crypto, even digital dollars need a passport renewal every few years.

Sei’s SIP-3 upgrade comes in March

Check your Sei wallet: if you hold USDC.n (USDC via Noble), you should MOVE to native USDC before the end of March 2026.

The SIP-3 upgrade (expected on mainnet in late March) will effectively make Sei an EVM-only chain, and Cosmos-native assets like USDC.n won’t be supported. pic.twitter.com/gNtiIbzN4o

— Sei Labs (@Sei_Labs) January 7, 2026

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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