On Tuesday, Circle announced the launch of the upgraded version of its Cross-Chain Transfer Protocol (CCTP V2), a significant development aimed at enhancing the speed and efficiency of USDC transfers across various blockchains. This update promises to streamline transaction times dramatically—from the typical range of 13-19 minutes on Ethereum and its Layer 2 networks to mere seconds.
Originally introduced in 2023, CCTP was designed to facilitate the movement of digital assets between blockchains without the need for conventional liquidity pools and third-party providers. Since its inception, the protocol has reported handling over $36 billion in transaction volume, showcasing its effectiveness in the rapidly evolving crypto landscape.
The upgraded CCTP V2 introduces a new Fast Transfer feature, which allows for nearly instantaneous transfers between supported networks, as detailed in Circle’s press release. For users who prefer a more traditional approach, the Standard Transfer option remains available, operating at the native settlement speed of each blockchain.
Another innovative addition is the Hooks feature, which empowers developers to automate actions such as asset swaps or treasury management on the receiving blockchain. This automation significantly reduces manual processing and enhances efficiency for decentralized finance (DeFi) applications, marking a notable advancement in the functionality of cross-chain transactions.
The upgraded protocol is now live on Ethereum, Avalanche, and Base, with Circle indicating that additional blockchain integrations are on the horizon later this year. Notable platforms such as CCTP.Money, Interport, LI.FI, Mayan, Socket, and Wormhole have already integrated the protocol, underscoring its industry relevance.
As the issuer of USDC, the second-largest stablecoin in the crypto market with a circulating supply of $58 billion, Circle continues to position USDC as a leading choice in crypto trading, DeFi, and an increasingly preferred option for payments, remittances, and real-world asset settlements within traditional finance.
