Accelerated Cross-Chain USDC Transfers Now Complete in Mere Seconds by The Circle
Circle's Upgraded Cross-Chain Transfer Protocol Speeds Up USDC Transactions
Financial technology company Circle has unveiled an upgrade to its Cross-Chain Transfer Protocol (CCTP V2), drastically reducing the processing time for cross-network USDC transactions from 13-19 minutes to a mere few seconds.
The enhanced CCTP V2, which includes a new set of smart contracts and APIs, streamlines the movement of the stablecoin between Ethereum and Layer 2 (L2) networks, significantly accelerating the process.
Nikhil Chandhok, Circle's Head of Product, emphasized that the update simplifies cross-chain transfers and makes them suitable for low-latency scenarios, such as those in the crypto capital markets.
Since its launch in 2023, CCTP has processed over $36 billion in transaction volume. The first version of the protocol will continue to operate on 11 blockchains, with Circle planning to add more networks to CCTP V2 throughout the year.
Among the new features, the Hooks mechanism stands out, allowing developers to automate actions after transferring to the target blockchain.
USDC, the second most popular stablecoin, boasts a market capitalization of $58 billion as of CoinGecko. The leading stablecoin, USDT by Tether, holds a market cap of $142.9 billion.
In 2024, USDC's circulation grew by 78%, and its total transaction volume since its launch surpassed $20 trillion.
The updated Cross-Chain Transfer Protocol is poised to improve interoperability, efficiency, and usability for cross-chain USDC transactions on networks like Ethereum and L2 systems, reducing settlement times and enhancing programmability and composability for developers.
The upgraded Cross-Chain Transfer Protocol (CCTP V2) by financial technology company Circle, now suitable for low-latency scenarios, is specifically designed to accelerate cross-network USDC transactions, focusing on networks like Ethereum and Layer 2 (L2) systems. This advancement in technology is expected to boost efficiency and usability in the finance sector.
The Hooks mechanism, a new feature in the enhanced CCTP V2, enables developers to automate actions after transferring to the target blockchain, further streamlining the process and enhancing programmability.
