Sei Labs has issued an urgent warning to users holding Cosmos-native assets on the Sei Network, particularly those with USDC via Noble, referred to as USDCn. The company is urging holders to convert these assets to native USDC before the deadline in late March 2026 to prevent potential loss of access to their funds. Based on the data provided in the document, it is crucial for users to act promptly to safeguard their investments.
Current USDCn Circulation on Sei Network
Currently, approximately $14 million worth of USDCn is circulating on the Sei Network. As Sei Labs transitions to an EVM-only chain, inbound IBC transfers will be disabled, which means users will no longer be able to bridge Cosmos-specific tokens into the Sei Network. This significant change emphasizes the need for users to act swiftly to secure their assets.
Options for Asset Conversion
To facilitate the conversion process, Sei Labs has provided options for users to swap smaller amounts through decentralized exchanges. For larger conversions, a migration tool has been made available. Users are strongly encouraged to unwind their positions in decentralized finance protocols as soon as possible to avoid complications in the future.
Recently, MilkyWay Protocol announced its decision to wind down operations due to insufficient demand in the DeFi space. This contrasts with Sei Labs' urgent warning regarding the conversion of Cosmos-native assets, highlighting the challenges faced by projects in the evolving blockchain landscape. For more details, see shutdown announcement.
