Circle Enhances Cross-Chain Transfer Protocol for Faster USDC Settlements

CCTP V2 introduces a new feature that enables near-instant USDC transfers across blockchains, cutting transaction times from minutes to seconds.

Key Points:

• Circle has introduced an upgraded version of its Cross-Chain Transfer Protocol (CCTP V2), significantly reducing transaction times from 13-19 minutes to just seconds.
• The new version includes a Fast Transfer feature for near-instant USDC transfers and Hooks, which automate tasks like asset swaps and treasury management on the destination blockchain.
• The upgraded protocol is now available on Ethereum, Avalanche, and Base, with further integrations planned. It is already supported by platforms such as CCTP.Money, Interport, and LI.FI.

Circle introduced an upgraded version of its Cross-Chain Transfer Protocol (CCTP V2) on Tuesday, enhancing USDC transfers across blockchains. The upgrade drastically reduces transaction times from the usual 13-19 minutes on Ethereum and its Layer 2 networks to just seconds.

Initially launched in 2023, CCTP enables seamless asset transfers between blockchains without relying on liquidity pools or third-party providers. Since its inception, the protocol has processed over $36 billion in transactions, according to Circle.

The updated version introduces a Fast Transfer feature, allowing near-instant transactions across supported networks, according to the press release. Meanwhile, the Standard Transfer option remains available, processing transactions at the native settlement speed of each blockchain.

The upgrade also introduces a feature called Hooks, enabling developers to automate actions like asset swaps and treasury management on the receiving blockchain. This enhancement minimizes manual processing and improves efficiency for decentralized finance (DeFi) applications.

The updated protocol is now live on Ethereum, Avalanche, and Base, with additional blockchain integrations planned later this year. Several platforms, including CCTP.Money, Interport, LI.FI, Mayan, Socket, and Wormhole, have already adopted the protocol.

Circle, the issuer of USDC, is behind the second-largest stablecoin in the crypto market, with a circulating supply of $58 billion. Pegged to the U.S. dollar, USDC is widely used for crypto trading, DeFi, payments, remittances, and real-world asset settlements in traditional finance.