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UPD: The Cross-Chain Protocol for the Transfer of Stablecoins from Circle Has Started Working

On April 26, the Cross-Chain Transfer Protocol from Circle was launched. The new protocol allows moving USDC between Ethereum and Avalanche.

Circle logo, the principle of operation of the CCTP protocol.

As we wrote earlier in January, Circle announced the creation of the Cross-Chain Transfer Protocol (CCTP). It was announced as a more secure alternative to cross-chain bridges that have poor security records.

The protocol was scheduled to be launched in the first quarter of 2023 and, with a slight delay, yesterday Circle launched the protocol.

The main feature of the CCTP protocol is that instead of blocking tokens on the source blockchain it burns them and then, after confirming the transaction, mints tokens in the second chain. This makes the movement of tokens between chains more secure compared to freeze-and-mint bridges.

Congratulations to Circle on its successful launch and we continue our Observations of the money technology.

This is an update to this article: USDC is Bypassing Cross-Chain Bridges