Circle Updates Cross-Chain Transfer Protocol Promising Faster Settlement of USDC Stablecoins
Circle Updates Cross-Chain Transfer Protocol That Promises Near-Instant USDC Settlements
CCTP V2 enables near-instant USDC transfers across blockchains with a new feature that reduces blockchain transaction times from minutes to just seconds.
Christian Sandor, AI Boost | Edited by Steven Alpher Updated Mar 11, 2025 1:52 PM UTC Published Mar 11, 2025 1:00 PM UTC
What you should know:
- Circle has unveiled an updated version of its cross-chain transfer protocol (CCTP V2), reducing transaction times to a few seconds instead of the usual 13-19 minutes on Ethereum and its Layer 2s, it reported.
- The new version includes a Fast Transfer feature for near-instant transfers and so-called Hooks to automate actions such as asset exchange or treasury management on the receiving blockchain.
- The updated protocol is now available on Ethereum, Avalanche, and Base, with additional integrations planned for this year. It has already been integrated on a variety of platforms, including CCTP.Money, Interport, and LI.FI.
Circle released an updated version of its Cross-Chain Transfer Protocol (CCTP V2), a tool that makes it easier to transfer USDC between different blockchains, on Tuesday. The company noted that the update significantly reduces transaction times to just a few seconds, down from the typical 13-19 minutes on Ethereum and its Layer 2 counterparts.
CCTP, which was introduced in 2023, is designed to move digital assets between blockchains without the need for traditional liquidity pools and third-party liquidity providers. According to Circle, the protocol has processed more than $36 billion in transactions since its launch.
The press release says the updated version offers a Fast Transfer feature that allows for near-instant transfers between supported networks. Standard transfers, which operate at blockchain settlement speeds, remain available.
Another new feature, called Hooks, allows developers to create automated actions such as asset exchanges or treasury management on the receiving blockchain. This reduces the need for manual processing and increases the efficiency of decentralized financial applications (DeFi).
The updated version is available on Ethereum, Avalanche, and Base, with more blockchain integrations expected this year, the company said. Several platforms, including CCTP.Money, Interport, LI.FI, Mayan, Socket, and Wormhole, have already integrated the protocol.
Circle is the issuer of USDC, the second-largest stablecoin in the cryptocurrency market with a market supply of $58 billion. Pegged to the US dollar, USDC is popular in crypto trading, DeFi, and is increasingly used for payments, remittances, and real-world asset settlements among traditional financial institutions.
