New Cross-Chain Remittance Protocol for Stablecoin ‘USDC’ Launches on Mainnet

Simplify user experience

Circle, which operates the US dollar stablecoin “USDC”, announced on the 26th that the “Cross-Chain Transfer Protocol (CCTP)”, which can be used for remittances across blockchains, has become available on the mainnet. .

First of all, it supports Ethereum (ETH) and Avalanche (AVAX) blockchains, and explains that it is now possible to transfer USDC between both blockchains using CCTP. According to the crypto asset (virtual currency) media “CoinDesk”, other blockchains will be supported in the second half of 2023.

1/ Today marks a new milestone! Cross-Chain Transfer Protocol (#CCTP) is now on mainnet for @Ethereum and @Avaxhttps://t.co/ExIAWywNGt

— Circle (@circle) April 26, 2023

It has been publicly announced for some time that CCTP is under development.In January of this year, the official release of a commentary for developersannouncement. At that time, he tweeted about how CCTP works.

In this announcement, at the launch of CCTP, “It is now possible to transfer USDC natively between compatible blockchains without permission.” He said he is looking forward to what kind of use cases developers will create with this feature.

He also explained that developers can use CCTP to make seamless remittances. He argued that since it is not a mechanism that locks USDC at the source chain and issues USDC at the destination, it is possible to make remittances more safely in an ecosystem consisting of various blockchains.

Circle said one of its goals in developing CCTP was to unify fluidity and simplify the user experience on Web3.

connection: What is a stablecoin that even beginners can understand | Explain features and use cases

How CCTP works

CCTP, which allows for “native” remittances, does not use the lock-and-mint (issue) approach to remittances, as described above, and roughly operates with the following mechanism.

1. User wants to send USDC to another blockchain on a specific app
2. Specify the blockchain address of the remittance destination
3. Burn (burn) the USDC of the remittance source
4. Issue USDC on destination blockchain and complete remittance
5. USD in Reserves No Transfer

Source: Circle Company

Circle’s original purpose is to make the movement of money more inclusive and efficient. The company’s mission is to promote global economic prosperity through the frictionless exchange of value. We hope that the CCTP-introduced infrastructure will become the foundation for the movement of money on the Internet.

According to the official website, CCTP is supported by Metamask in wallets. Developers can also use development kits such as “LayerZero” that support CCTP.

connection: Explanation of points to note when using Web3 wallet Metamask

connection: What is Blockchain Interoperability Protocol “LayerZero”?

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