Circle, the issuer of USD Coin (USDC), has launched on mainnet the Cross-Chain Transfer Protocol (CCTP) for moving stablecoin across blockchains. The solution is initially implemented for Ethereum and Avalanche.
1/ Today marks a new milestone! Cross-Chain Transfer Protocol (#CCTP) is now on mainnet for @Ethereum and @Avax. https://t.co/ExIAWywNGt
— Circle (@circle) April 26, 2023
“CCTP eliminates the need for traditional bridges with a ‘lock and mint’ approach, improves liquidity within the blockchain ecosystem and enables developers to provide users with a seamless and secure way to move USDC across networks,” the firm said.
When a transfer is requested, CCTP burns the amount of USDC specified by the user in the source network and mints an equivalent amount of coins for their wallet on the destination blockchain.
According to the developers, the solution simplifies a number of use cases for the stablecoin, including depositing on DEX across networks, cross-chain purchases and swaps.
“In a single click you can move USDC from Avalanche to Uniswap to buy an Ethereum NFT and list it for sale on OpenSea,” they said as an example scenario.
The team noted that several cross-chain protocols, including Celer, Hyperlane, LayerZero, Wormhole, and the MetaMask wallet, have expressed willingness to use CCTP.
Circle issues the stablecoin on several networks, including Algorand, Avalanche, Hedera, Solana, Cosmos and others. The company plans to integrate at least some of them into CCTP during 2023.
In January, the company published its first annual report on the state and prospects of the USDC economy.