Circle Unveils New Method for Moving USDC Between Blockchains
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
:format(jpg)/s3.amazonaws.com/arc-authors/coindesk/fa5ce9a3-9c4d-4ed4-bb04-c7af51bf1a0d.jpg)
Danny is CoinDesk’s Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
USDC issuer Circle Internet Financial on Wednesday released a new method to move the major stablecoin between blockchains that it says is faster, safer and cheaper than the so-called “bridges” that pervade decentralized finance (DeFi).
Called the “Cross-Chain Transfer Protocol,” the technology debuts for USDC transfers between Ethereum and Avalanche, with more chains coming in the second half of 2023. DeFi apps can integrate the relevant smart contracts to make it easy for users to move their stablecoins about.
The tech attempts to break down the barriers currently fragmenting USDC’s $30 billion market cap across many different blockchains. Though Circle issues “native” USDC on many top ecosystems including Ethereum and Avalanche, those asset tranches were more or less partitioned; those who wanted to “bridge” the divide had to engage in complicated and sometimes expensive cross-chain transfers.
Circle’s new method seeks to replace bridges, which solved that problem by creating another: a derivative token called a wrapped asset. CCTP works by destroying USDC on the source chain and re-creating it on the destination chain.
The process could pay the biggest dividends when it comes to asset swaps. It could be used to move cross-chain and cross-token transfers behind the scenes.
“With CCTP, developers can simplify the user experience and their users can trust that they are always transacting with a highly liquid, safe and fungible asset in native USDC. This milestone makes USDC a natively multi-chain digital dollar,” Joao Reginatto, VP of Product said in a press release.
Wallet company MetaMask, bridge operator Wormhole and bridge aggregator LI.FI are among the infrastructure providers with CCTP coverage at launch.
Circle could not immediately be reached for comment.
DISCLOSURE
Please note that our
privacy policy,
terms of use,
cookies,
and
do not sell my personal information
has been updated
.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
Digital Currency Group,
which invests in
cryptocurrencies
and blockchain
startups.
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
stock appreciation rights,
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG
.
Danny is CoinDesk’s Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Danny is CoinDesk’s Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.
