• Circle – the issuer of the second largest stablecoin by market cap, USDC – is preparing to launch a permissionless protocol for letting users transfer their stablecoins between blockchains.
• The Cross-Chain Transfer Protocol (CCTP) will help foster more scalable, efficient, secure and user friendly apps built on USDC.
• The protocol can be embedded into dapps, and provide the most “capital efficient” path for cross-chain USDC transfers.
Circle, the issuer of the second largest stablecoin by market cap, USDC, is preparing to launch a permissionless protocol that will allow users to transfer their stablecoins between blockchains. This Cross-Chain Transfer Protocol (CCTP) is designed to not only foster more scalable, efficient, secure and user-friendly apps built on USDC, but also provide the most “capital efficient” path for cross-chain USDC transfers.
The protocol will allow users to burn USDC on one chain, while Circle sends them newly minted USDC on another. This will benefit those who are looking to move their funds from one cryptocurrency blockchain to another, without having to worry about the exchange rate or fee associated with the transfer.
The protocol will also be embedded into dapps, which will make it easier for developers to use USDC as a payment option for their services. This will provide users with more options when it comes to making payments, as well as more control over their funds. In addition, this will also provide developers with an easier way to develop and maintain their applications, as they will no longer need to manually manage cross-chain transfers.
Circle CEO Jeremy Allaire spoke about the upcoming protocol, saying, “The Cross-Chain Transfer Protocol will help foster more scalable, efficient, secure and user friendly apps built on USDC. We believe that this protocol will be a critical component of the USDC ecosystem, enabling developers to build more powerful, secure and efficient applications and services.”
The protocol is set to launch soon, and will no doubt make a great impact on the cryptocurrency community. With this protocol, Circle will be able to provide a much more efficient way for users to transfer their funds across blockchains, as well as giving developers an easier way to integrate USDC into their applications. It will be interesting to see how this protocol will be used in the future, and what it may mean for the cryptocurrency industry as a whole.