Kreiskreuz-Chain Transfer Protocol meets Mainnet for USDC transfers

Kreiskreuz-Chain Transfer Protocol meets Mainnet for USDC transfers

The FinTech company Circle gave the Mainnet availability of Cross-Chain Transfer Protocol (CCTP) for developers that build on Ethereum and Avalanche networks. The protocol will essentially enable USDC to flow native through supported chains by burning the native stable coin on a source chain and shaping the same amount on a target chain.

The "Burn and Mint" process means that USDC "teleported" from one blockchain to the other by eliminating the complications and risks of traditional "LOCK and MINT" approaches.

USDC interperability

Some of the bridges and protocols that are already live with CCTP are - MultiChain, Celer, Layerzero, Li.Fi, Metamask, Hyperlan, router, socket, rarimo, Wormhole and Wanchain. Circle also intends to extend CCTP to further chains in the second half of 2023.

In an explanation of April 26, Joao Reginatto, Vice President of Product at Circle, said that Cross-Chain Transfer Protocol offers native USDC interperability via Web3. He added that the liquidity and capital inefficiency problems in decentralized financing (Defi) can be solved by the protocol due to the risks and fragmentation of bridged assets.

"With CCTP, developers can simplify user experience, and their users can trust that they always act with a highly liquid, safe and fun asset in native USDC. This milestone makes USDC a native digital multi-chain dollar."

stablecoins are a crucial element of the defi economy. With the new tool, Circle would like to standardize the liquidity in the entire ecosystem and simplify the user experience.

To use the protocol, users must first initiate a transmission of USDC on a source chain. The fire event is then observed and attested by Circle in the source chain. The company is then commissioned to grant the approval of the specified amount of USDC in the target chain. Finally, the certificate is used to trigger the shape of USDC on the target chain and then sent to the recipient's item of the item.

fud and expansion

USDC recorded massive drains after the temporary de-pegging event. The market capitalization of the stable coins has almost halved in the past six months alone.

Despite the Fud last month, Circle pushed to the expansion of USDC over several blockchains.

The company entered into a partnership with the Bitcoin depot bank and licensed private bank XAPO in March to integrate USDC payment rails. Circle has also applied for official permits in France because the company has doubled its European expansion in the middle of a strict official examination.

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