2023-01-23
Circle, the developer behind USDC announces a cross-chain
transfer protocol that will make it easier for users to move USDC cross chains.
Cross-chain protocol will first run on Ethereum and Avalanche in the first
quarter of 2023. Circle plans to add Solana for the next blockchain, and after
that add other blockchains.
Mechanism
Cross-chain
transfer protocol (CCTP) works burning native USDC on a source chain, and
mint native USDC of the same amount on a destination chain. Users can go to
an app or dapp and put the destination address. Then, they initiate a
transaction from one blockchain to another blockchain. The mechanism starts by burning USDC
on the source chain. Circle attests and mint USDC on the destination chain.
Benefits of Cross-Chain Transfer Protocol
1. Users can use defi apps easier because they can swap USDC in
multiple blockchains such as Ethereum, Avalanche.
2. CCTP will facilitate the purchase of NFTs, users can buy NFT on
Ethereum, Solana, or other blockchain easier.
CCPT will enable USDC and other stablecoins to be interoperability.
