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Circle To Launch Cross-Chain Transfer Protocol To Foster More Secure Apps Built On USDC

Circle To Launch Cross-Chain Transfer Protocol To Foster More Secure Apps Built On USDC

Circle To Launch Cross-Chain Transfer Protocol To Foster More Secure Apps Built On USDC

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Key Points:

Circle is implementing a protocol that helps foster more scalable, efficient, secure and user-friendly apps built on USDC.
Circle To Launch Cross-Chain Transfer Protocol To Foster More Secure Apps Built On USDC

Circle CEO Jeremy Allaire tweeted that Circle’s Cross-Chain Transfer Protocol (CCTP) will be launched soon. This infrastructure helps build more scalable, efficient, secure, and user-friendly applications based on USDC.

Instead of locking native USDC on the source chain, which could pose a security risk, and minting a synthetic or bridged version of USDC on the destination chain, which leads to fragmentation of liquidity and a subpar user experience, CCTP eliminates the need to use a traditional “lock-and-mint” bridge.

The protocol will be made public through smart contracts, which can destroy native USDC on the source chain and mint the same amount of native USDC on the target chain. According to Circle, this provides users with the most capital-efficient way to transfer USDC across chains.

According to official data, from January 12 to January 19, Circle issued a total of 5.6 billion USDC, redeemed 6.5 billion USDC, and the circulation decreased by about $900 million. As of January 19, the total circulation of USDC was $43.1 billion, and the reserve was $43.2 billion, including $9.5 billion in cash and $33.7 billion in short-term US treasury bonds.

CCTP works in three methods:

Currently, CCTP is available on Goerli testnet for Ethereum and Fuji testnet for Avalanche.

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Harold

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