July 23, 2024
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Blockchain News

Stablecoin Issuer Circle Launches Cross-Chain Transfer Protocol

Circle stated on April 26 that its Cross-Chain Transfer Protocol (CCTP) was now operational on the main net. Furthermore, the technology supports the permissionless transfer of USDC across compatible blockchains.

According to the corporate blog post, CCTP allows USDC to be “teleported” between chains. The stablecoin is thus “effectively destroyed on the source chain and recreated 1:1 on the destination chain.”

Furthermore, Circle Product Vice President Joao Reginatto stated that the company’s US dollar reserves are still intact. “CCTP is a permissionless protocol designed for developers to take advantage of this phenomenal transport primitive.”

Developers will be able to create apps that support several native versions of the stablecoin. USDC is now available on eight different networks, according to the release. Ethereum, Solana, Avalanche, TRON, Algorand, Stellar, Flow, and Hedera are among them.

Furthermore, CCTP has already been integrated by a number of crypto infrastructure providers. Celer, Hyperlane, LayerZero, LI.FI, MetaMask, Multichain, Rarimo, Router, Socket, Wanchain, and Wormhole are among them.

The technology moves Circle one step closer to a “open dollar developer platform that serves as a foundation for moving money on the internet,” according to Reginatto, who goes on to say that “CCTP is the most ambitious piece of neutral market infrastructure that Circle has built since introducing USDC in 2018.”

USDC is the second most popular stablecoin, after only Tether (USDT). However, unlike its rival, which has increased supply this year, the amount of USDC in circulation has been decreasing.Circle estimates that the current supply of USDC is $31 billion. Furthermore, it has fallen by 30% since the start of the year and by 45% from its all-time high.

Furthermore, USDC’s market share has fallen to 23.5%, with Tether controlling 62% of the stablecoin market.

Circle CEO Jeremy Allaire has issued a warning about the growing tendency of de-dollarization. Furthermore, more and more countries, particularly in Asia and Latin America, are abandoning the dollar.

Allaire stated last week at a crypto conference, “We have a very active de-dollarization taking place.” “You’re having very significant reactions to the US, risks in the US banking system, risks with the US government itself,” Allaire added, urging the government to speed up stablecoin regulation and issue a digital dollar CBDC. Failure to do so, he argued, would be a “giant missed opportunity” for the country.