Circle Now Supports CCTP For Arbitrum To Make USDC Transfer Faster And Safer

Key Points:

• Circle’s Cross-Chain Transfer Protocol (CCTP) is now operating on Arbitrum, an Ethereum Layer 2 scaling solution.
• CCTP allows for USDC to be transferred across blockchain networks by burning native USDC on the originating chain and minting an equivalent quantity on the receiving chain.
• The integration aims to make USDC transactions quicker and more secure across different chains while eliminating the need for “lock-and-mint” bridging.

Circle, the company behind the USD Coin stablecoin, said that its Cross-Chain Transfer Protocol is now operating on Arbitrum, an Ethereum Layer 2 scaling solution.

CCTP allows USDC to be transferred across blockchain networks by burning native USDC on the originating chain and minting an equivalent quantity on the receiving chain. Arbitrum is the third chain to support CCTP and is now available on the official Arbitrum Bridge.

The protocol is intended to make USDC transactions quicker and more secure across different chains, including Ethereum, Avalanche, and Arbitrum. Developers may also create applications that provide native cross-chain deposits, swaps, purchases, and other services.

Users using CCTP get native USDC. The official Arbitrum Bridge now allows ecosystem applications that use CCTP to quickly transfer USDC to Arbitrum, eliminating the need for “lock-and-mint” bridging. The traditional “lock-and-mint” approach has already been linked to security breaches. Moreover, according to Circle, using CCTP aids in faster bridge transfers.

Circle launched a native version of their stablecoin on the Arbitrum network shortly before the CCTP integration.

Arbitrum is an Ethereum layer 2 scaling solution created by Offchain Labs. It employs Optimistic Rollup technology to quickly grow transaction throughput for decentralized applications while maintaining the security provided by the Ethereum blockchain. It is currently the seventh blockchain that supports USDC.

Several bridge projects and protocols are focusing on interoperability, such as Celer Network, Li.Fi, Wormhole, O3 Labs, Wanchain, and Router Protocol, have already incorporated CCTP into their systems to enable USDC transfers across their platforms.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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