Circle has released the Cross-Chain Transfer Protocol (CCTP) for Ethereum and Avalanche blockchains, allowing users to transfer their USD Coin stablecoin between the two networks.
The protocol enables the transfer of USDC stablecoins across different blockchain networks by burning native USDC on one chain and minting the same amount on another, making asset transfers possible.
CCTP eliminates the need for wrapping-based bridges, which are considered vulnerable to hacks, and improves liquidity across the blockchain ecosystem.
Circle’s USDC is the second-largest stablecoin in the crypto market with a total supply of nearly $29 billion. Several bridge projects and interoperability-focused protocols like Celer Network, Layer Zero, Li.Fi, Multichain, Router Protocol, among others, have already integrated the protocol. CCTP is expected to be available on other blockchain networks in the future.