Circle’s Cross-Chain Transfer Protocol Hits Mainnet for USDC Transfers
Market Musing-g

Circle’s Cross-Chain Transfer Protocol Hits Mainnet for USDC Transfers

3ในการอ่าน
1 year ago

Circle said that CCTP is a highly secure and capital-efficient way for USDC transfers in an increasingly multi-chain environment. 

Circle’s Cross-Chain Transfer Protocol Hits Mainnet for USDC Transfers

สารบัญ

Fintech firm Circle announced the mainnet availability of Cross-Chain Transfer Protocol (CCTP) for developers building on Ethereum and Avalanche networks. The protocol will essentially allow USDC to flow natively across supported chains by burning the native stablecoin on a source chain and minting the same amount on a destination chain.

The “burn and mint” process results in USDC “teleporting” from one blockchain to another by eliminating the complications and risks of traditional “lock and mint” approaches.

USDC Interoperability

Some of the bridges and protocols that are already live with CCTP on the mainnet are – Multichain, Celer, LayerZero, LI.FI, MetaMask, Hyperlane, Router, Socket, Rarimo, Wormhole, and Wanchain. Circle further intends to expand CCTP to additional chains in the second half of 2023.

In a statement on April 26th, Joao Reginatto, Circle’s VP of Product, explained that Cross-Chain Transfer Protocol gives USDC native interoperability across Web3. He added that the liquidity and capital inefficiency issues in decentralized finance (DeFi) due to the risks and fragmented nature of bridged assets can be solved by the protocol.

“With CCTP, developers can simplify the user experience, and their users can trust that they are always transacting with a highly liquid, safe, and fungible asset in native USDC. This milestone makes USDC a natively multi-chain digital dollar.”

Stablecoins are a crucial element of the DeFi economy. With the new tool, Circle aims to unify liquidity across the ecosystem and simplify the user experience.

To use the protocol, users will have to begin by initiating a transfer of USDC on a source chain. The burn event will then be observed and attested by Circle on the source chain. The firm is then tasked with providing authorization to mint the specified amount of USDC on the destination chain. Finally, the attestation is used to trigger the minting of USDC on the destination chain and then sent to the recipient’s wallet address.

FUD and Expansion

USDC saw massive outflows following the momentary de-pegging event. The US regulatory crackdown and banking crisis nearly slashed the stablecoin’s market cap by half over the past six months alone.

Despite the FUD last month, Circle has been pushing for USDC’s expansion across several blockchains.

The company partnered with Bitcoin custodian and licensed private bank Xapo in March to integrate USDC payment rails. Circle has also applied for regulatory approvals in France as it doubled down in European expansion amid heavy regulatory scrutiny.
0 people liked this article

Related Articles

Market Musing-g
Cardano’s Djed Stablecoin Breakthrough: Bridging the Gap with Ethereum and Transforming the Crypt...
Cardano’s Djed stablecoin protocol to be deployed on Milkomeda-C1, an EVM-compatible sidechain. Djed’s implementation in Solidity language opens expansion opportunities to more EVM-comp...
1 year ago
3ในการอ่าน
Market Musing-g
[Feature] DEX vs. CEX: What is the Future of Financial Systems?
Both DEXs and CEXs have played a significant role in shaping our financial systems thus far. CEXs have dominated the crypto market, but DEXs are gaining popularity with the rise of DeFi
1 year ago
4ในการอ่าน
Announcements
MOBLAND'S Third-Person Shooter: Closed Alpha
1 year ago
2ในการอ่าน
Market Musing-g
What to know about Michael Saylor’s Bitcoin and Lightning event
The Bitcoin and Lightning for Corporations event is rapidly approaching, offering a unique opportunity for corporate leaders, financial executives, and technology innovators to explore the future o...
1 year ago
2ในการอ่าน
DeFi
DeFi Aggregator OpenOcean Integrates zkSync to Accelerate Its Expansion in ZK-Rollups
In a recent announcement, DeFi aggregator OpenOcean, integrated zkSync to boost its expansion in ZK-Rollups.
1 year ago
3ในการอ่าน
Market Musing-g
Dymension Launches IBC-Enabled EVM Rollup on Testnet to Enhance Cosmos Ecosystem
Dymension raised around $7 million in a private round earlier this year.
1 year ago
3ในการอ่าน