Circle activates stablecoin transmission protocol between Ethereum and Avalanche
The Ethereum and Avalanche networks may now use the Cross-Chain Transfer Protocol (CCTP), which was provided by Circle.
Circle, the company behind the USD Coin stablecoin, has published the Cross-Chain Transfer Protocol (CCTP) for Ethereum and Avalanche chains, allowing users to transfer their USDC stablecoin between the two blockchains.
As stated on the official developer FAQ page, this protocol allows for the transfer of USDC between various blockchain networks by burning native USDC on one chain and minting the equivalent number on another.
In a tweet, Circle explained how CCTP eliminates the requirement for “traditional lock-and-mint approaches” to bridging USDC, increases liquidity throughout the blockchain ecosystem, and allows developers to provide their consumers a smooth and safe experience when transferring USDC natively across chains.
Circle stated that bridge initiatives and interoperability-focused protocols such as Celer Network, Layer Zero, Li.Fi, Multichain, and Router Protocol have already integrated the protocol to allow users to transfer USDC through their interfaces.
With CCTP, Circle has provided a more secure method than cross-chain bridges for transferring stablecoins from one blockchain to another. It enables the transfer of USDC across chains via a native mechanism of burning and minting, eliminating the need for wrapping-based bridges.