KEY TAKEAWAYS
- Sei Network users must swap USDC.n for native USDC by March 2026 to avoid asset access issues due to the SIP-3 upgrade.
- The SIP-3 upgrade will transition Sei to an EVM-only chain, ending support for Cosmos-native assets like USDC via Noble.
- Various conversion options are available, including DragonSwap, Symphony, and manual migration using bridges like Stargate.
- Users should monitor official announcements for updates and consider risks associated with conversion tools and manual migration.
As of the latest update, over $1.4 million in USDC via Noble (USDC.n) is currently held on the Sei Network. Holders of USDC.n are advised to swap their assets for native USDC before the end of March 2026. This precaution is necessary to avoid potential loss of access to assets due to the upcoming SIP-3 upgrade.
The SIP-3 upgrade, accepted by the Sei ecosystem last year, is set to transition Sei into an Ethereum Virtual Machine (EVM)-only chain. This change will discontinue support for Cosmos-native assets like USDC via Noble. Consequently, USDC.n may become inaccessible or lose its value on the Sei Network post-upgrade.
Options for USDC.n Holders
The SIP-3 upgrade is expected to go live on the mainnet by the end of March 2026, though this timeline may change. Users should keep an eye on official announcements for any updates. For those holding USDC.n, several options are available for conversion.
For smaller volume conversions, platforms like DragonSwap or Symphony can be used to swap USDC.n for USDC. However, slippage may vary based on market conditions and liquidity. It is important to note that the mention of these platforms does not imply endorsement, and users should conduct their own research before using any third-party service.
For larger-volume conversions, a tool is available that batches and migrates USDC.n to native USDC on the Sei Network. This process involves transferring USDC.n through Noble, then Polygon, and back to the Sei Network using Circle’s Cross-Chain Transfer Protocol (CCTP). Users should be aware of the risks, including technical failures, potential loss of funds during transfer, and delays, as the tool is provided “as is” without warranties.
Manual Migration and Additional Considerations
Alternatively, users can manually migrate their USDC.n by using a bridge like Stargate. This involves targeting an intermediary chain where both CCTP v1 and v2 contracts are deployed, such as Base, and then using CCTP to burn/mint native USDC back to Sei. Manual migration carries additional risks, including technical errors and security vulnerabilities. Users should only attempt this if they fully understand the technical process and associated risks.
Other useful frontends for bridging or migrating include the CCTP Exchange. For suppliers of USDC.n on decentralized finance (DeFi) protocols such as Yei or Takara Lend, it is crucial to wind down positions and withdraw them before migrating to native USDC. Failure to do so before the SIP-3 upgrade may result in an inability to access supplied assets.
At the time of writing, approximately $194,000 of USDC.n is supplied on Yei, and around $13,000 is supplied on Takara Lend. These figures are estimates and may change rapidly.
For more information on how to migrate or swap USDC.n, users are encouraged to join the Discord community, where team members can provide further assistance. More details can be found in the official announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Sei Network is urging users to swap USDC.n for native USDC before the SIP-3 upgrade in March 2026 to prevent potential loss of access to assets. This upgrade will transition Sei into an Ethereum Virtual Machine (EVM)-only chain, affecting Cosmos-native assets.
A recent analysis highlights the positive industry reception to Sei Network’s EVM-only transition, with daily transactions on the Sei EVM increasing by 57% month-over-month. This aligns with the news as the SIP-3 upgrade aims to enhance Sei’s competitiveness in the EVM ecosystem.
Recent market data indicates that USDC.N trades at a near 1:1 exchange rate with standard USDC, reflecting stability in the conversion process. This supports the significance of the news as it provides assurance to users about the value retention during the swap process.
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