CCTP allows users to transfer USDC between Ethereum and Avalanche.
The protocol provides a highly secure and efficient way to transact USDC.
Circle, the issuer of the USD Coin, has launched the Cross-Chain Transfer Protocol (CCTP) on the mainnet for Ethereum and Avax, according to an announcement on April 26. The new protocol allows users to transfer USDC between Ethereum (ETH) and Avalanche (AVAX).
The permissionless protocol allows USDC transfers between blockchains via native burning and minting. Moreover, it delivers an unparallel level of interoperability, liquidity, security, and a simplified user experience. The CCTP provides a highly secure and efficient way to transact with USDC in a developing multi-chain environment. This will avoid the complications and risks of the traditional lock and mint method.
CCTP Provides Safer USDC Transactions
The team released a demo video of how the protocol works on April 16. The protocol doesn’t lock the tokens in the contract. Instead, it destroys the tokens and issues new ones on the receiving networks. Users can redeem the newly issued tokens for bank deposits by depositing the tokens with Circle.
In the announcement, the team stated that the CCTP has the ability to connect the blockchains, which supports simpler and safer transactions. Additionally, the users can send and receive USDC without knowing the blockchain on which it lives.
Circle believes that the CCTP is a major step moving forward in developing infrastructure and complexity in the background. This will provide a path for developers to create consumer-scale Web3 apps.
The team mentioned that some larger multi-chain apps have already integrated with the CCTP on the mainnet, including Celer, Hyperlane, LayerZero, LI.FI, MetaMask, Multichain, Rarimo, Router, Socket, Wanchain, and Wormhole. Moreover, additional apps and protocols are working towards integrating with the CCTP.