On Tuesday, Circle unveiled the enhanced version of its Cross-Chain Transfer Protocol (CCTP V2), a utility designed to streamline USDC transfers across various blockchains. The company noted that this upgrade drastically reduces transaction times to just seconds compared to the usual 13-19 minutes on Ethereum and its Layer 2 solutions.
Initially launched in 2023, CCTP aims to transfer digital assets between blockchains without depending on conventional liquidity pools or third-party liquidity sources. Since its launch, the protocol has processed transactions worth over $36 billion, according to Circle.
The upgraded CCTP introduces a Fast Transfer feature, allowing for nearly instantaneous transfers between supported networks, as stated in the press release. A Standard Transfer option is still available, operating at the native settlement speed of the respective blockchain.
A new component named Hooks is also included, enabling developers to create automated actions such as asset swaps or treasury management on the receiving blockchain. This innovation minimizes manual interventions and boosts efficiency for decentralized finance (DeFi) platforms.
The latest version has been activated on Ethereum, Avalanche, and Base, with plans for additional blockchain integrations later this year. Several platforms, including CCTP.Money, Interport, LI.FI, Mayan, Socket, and Wormhole have already adopted the protocol.
Circle is the issuer of USDC, the second-largest stablecoin in the cryptocurrency realm, boasting a circulating supply of $58 billion. USDC, which is pegged to the U.S. dollar, enjoys popularity in crypto trading, DeFi, and is increasingly utilized for payments, remittances, and settling real-world assets in traditional finance settings.