Stablecoin issuer Circle announced its Cross-Chain Transfer Protocol (CCTP) is now available on the mainnet. Initially, CCTP will facilitate USDC transfers between Ethereum and Avalanche blockchains, with more chains being added in the second half of 2023.
The CCTP technology permits the transfer of USDC across supported blockchains without requiring permission. This feature enables the stablecoin to be teleported across chains, allowing USDC to be effectively destroyed on the source chain and recreated in a 1:1 ratio on the destination chain.
CCTP offers builders a safe way to programmatically burn and mint USDC within their apps. Developers can now build applications that support different native versions of the stablecoin.
USDC is currently available on eight different networks, including Ethereum, Solana, Avalanche, TRON, Algorand, Stellar, Flow, and Hedera.
Several crypto infrastructure providers have already integrated CCTP, LayerZero, LI.FI, MetaMask, Multichain, Celer, Hyperlane, Socket, Wanchain, Wormhole, Rarimo, and Router.
The Vice President of Product at Circle, Joao Reginatto, explained that the company’s primary objective of creating the ultimate dollar protocol on the internet has led them to introduce the Cross-Chain Transfer Protocol. This new system enables USDC to have native interoperability across Web3, addressing existing DeFi liquidity and capital inefficiency issues that arise from the fragmented and risky nature of bridged assets.
Developers can use CCTP to simplify their user’s experience, ensuring they transact with a highly liquid, safe, and fungible asset in native USDC. The introduction of this milestone makes USDC a natively multi-chain digital dollar, says Reginatto.
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