- CCTP allows USDC to move between Ethereum and Avalanche blockchains
- Many protocols have already committed to using CCTP in the future
Circle, the stabelcoin issuer of USDC, has launched the crosschain protocol CCTP, which allows users to transfer USDC between Ethereum and Avalanche.
Unlike a traditional bridge, the new protocol does not block tokens sent to its contract. Instead, it completely destroys them and releases new ones on the receiving network.
The developers say the protocol will facilitate USDC transfers between different blockchain networks:
“CCTP eliminates the need to connect USDCs using traditional lock-and-mint approaches and improves liquidity in the blockchain ecosystem.
With CCTP, developers can simplify the user experience, and their users can rest assured that they are always transacting with a highly liquid, secure and interchangeable asset – the native USDC.”
The team also said that many protocols have already committed to using CCTP in the future, including Celer, Hyperlane, LayerZero, LI.FI, MetaMask, Wormhole and others.
The CCTP is expected to expand to additional blockchains in the second half of 2023.