Circle has launched an upgraded version of its cross-chain transfer protocol, allowing USDC transactions to be settled in mere seconds.
Developers can now utilize the latest iteration of the cross-chain transfer protocol for USDC (USDC) transactions that settle almost instantly, as announced by Circle.
This enhanced CCTP v2 is powered by two primary features: Fast Transfer and Hooks.
The new Fast Transfer capability will significantly decrease USDC settlement times from as much as 15 minutes on Ethereum (ETH) and layer-2 networks to just a handful of seconds. This functionality is available regardless of the source blockchain for transactions.
In addition to enabling quicker-than-finality settlements, the Hooks feature of v2 also improves the composability for smart contracts, allowing developers to automate actions post-transfer on the receiving blockchain for USDC.
“Conventional cross-chain processes are often fraught with extra trust assumptions, delays due to block finality, and liquidity fragmentation,” stated Jonathan Lim, principal product manager at Circle.
“CCTP V2 addresses these challenges and lays the groundwork for better cross-chain USDC liquidity, an improved user experience across chains, and top-tier cross-chain infrastructure for crypto capital markets.”
The introduction of CCTP comes shortly after the company added support for passkeys in its Modular Wallets, which aims to enhance the transaction experience for USDC users. Passkeys offer developers an easy onboarding process for users and secure USDC transactions, with the main advancement lying in improved authentication flows.
According to Circle, CCTP v2 will maintain the cross-chain transfer speeds for USDC that are currently provided by CCTP v1. This standard transfer time allows transactions to settle based on the finality time of the respective blockchain.
Supported networks and future expansion
The v2 protocol initially supports the Avalanche, Base, and Ethereum networks, with plans for expanding its features to additional chains. Notable platforms such as Wormhole, Mayan, Interport, and Socket are among those that have already integrated CCTP v2.
Circle first introduced its cross-chain transfer protocol in April 2023, and it has since seen widespread adoption throughout the ecosystem, with integrations across leading blockchain networks and protocols contributing to its growth.