Circle Launches Cross-Chain Transfer Protocol for USDC Stablecoin Interoperability

Circle Launches Cross-Chain Transfer Protocol for USDC Stablecoin Interoperability

By Miles

27 Apr 2023 (about 1 year ago)

3 min read

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Circle has launched its Cross-Chain Transfer Protocol (CCTP) allowing for the permissionless transfer of USDC across supported blockchains while keeping its U.S. dollar reserves intact, 

Circle, the issuer of the USDC stablecoin, has launched a cross-chain transfer protocol for interoperability. The protocol, called Cross-Chain Transfer Protocol (CCTP), allows the permissionless transfer of USDC across supported blockchains. Developers can build applications that support different native versions of the stablecoin, as USDC is available on eight different networks, including Ethereum, Solana, and TRON. Several crypto infrastructure providers have already integrated CCTP, including MetaMask and Multichain. The system brings Circle closer to its goal of an open dollar developer platform that serves as a foundation for moving money on the internet.


According to Circle, the current supply of USDC is $31 billion, having declined by 30% since the beginning of the year and 45% since its all-time high. This has resulted in a USDC market share decline to 23.5%, with Tether commanding 62% of the stablecoin market. Circle CEO Jeremy Allaire has warned about the increased trend of de-dollarization, with more and more countries, especially in Asia and Latin America, ditching the dollar. Speaking at a crypto conference, Allaire urged the government to accelerate the regulation of stablecoins and issue a digital dollar CBDC. Failure to do so would be a "giant missed opportunity" for the country.


CCTP gives USDC the unique ability to be teleported across chains, effectively destroyed on the source chain and recreated 1:1 on the destination chain. The system enables USDC to be transferred natively across supported blockchains while keeping its U.S. dollar reserves intact. According to Circle Product Vice President Joao Reginatto, CCTP is a permissionless protocol built for developers, allowing them to benefit from this phenomenal transport primitive. Developers will be able to build applications that support different native versions of the stablecoin.


CCTP is the most ambitious piece of neutral market infrastructure that Circle has built since introducing USDC in 2018, said Reginatto. The system brings Circle another step closer to an open dollar developer platform that serves as a foundation for moving money on the internet. Developers can use the system to build applications that support different native versions of the stablecoin. USDC is available on eight different networks, including Ethereum, Solana, Avalanche, TRON, Algorand, Stellar, Flow, and Hedera. Several crypto infrastructure providers have already integrated CCTP, including Celer, Hyperlane, LayerZero, and LI.FI.


In addition to Circle's efforts to promote cross-chain transfers and interoperability, the company has also been focusing on regulatory compliance. Circle has been working closely with regulators in the U.S. and Europe to ensure that its stablecoin operates within the bounds of the law. In March, Circle became the first stablecoin issuer to receive a Mastercard principal membership, allowing it to issue cards that can be used with USDC.

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