Circle has launched its Cross-Chain Transfer Protocol (CCTP), a new product that allows developers to move the USDC stablecoin between Ethereum and Avalanche with ease.
The move removes the need for older methods of cross-chain transfers, which require locking and minting assets, and allows users to “burn and mint” or “teleport” USDC between blockchains.
This means customers will be able to transact with USDC without needing to know which blockchain their assets are on, as apps that use CCTP will allow for seamless support of different native versions of USDC. More than 10 apps, including Ethereum wallet Metamask and Solana bridge Wormhole, have reportedly adopted CCTP to date.
Circle also plans to make CCTP available on various other chains throughout 2023. Although USDC is already available on a variety of blockchains, CCTP will allow for easy movement across those blockchains.
With a market cap of $30 billion, USDC is currently the second-largest stablecoin after Tether.
In March, the asset briefly lost its peg with the US dollar, but Circle was able to access the $3.3 billion of USDC backing it had stored with Silicon Valley Bank, and USDC quickly regained its intended $1.00 price peg.
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