- The CCTP network is a permissionless protocol built for developers, allowing them to benefit from this phenomenal transport primitive in USDC stablecoin.
- A total of 4.5 million USDC payments with a volume of more than $3 billion have been facilitated by the Stellar network.
The second largest stablecoin with more than 1.7 million holders, USDC, developed by Circle has continued to build interoperable infrastructure for future growth prospects. According to Joao Reginatto, vice president of product at Circle, the company has launched the mainnet for the Cross-Chain Transfer Protocol (CCTP) network that enables seamless transfer of USDC between different chains without traditional bridges.
Currently, USDC is available on several blockchains including Ethereum, Solana, Avalanche, TRON, Algorand, Stellar, Flow, Binance, and Hedera, among others.
However, developers find it challenging to move USDC between different chains without liquidity risks. Moreover, blockchain bridges in the past have been exploited and led to the loss of billions of digital assets.
As a result, Circle developers embarked on a journey to build a cross-chain USDC infrastructure. Whereby one can send USDC coins from one chain to another and the CCTP network automatically burns the coins in the initial chain.
“With USDC being an off-chain collateralized asset, CCTP gives USDC the unique ability to be ‘teleported’ across chains, where USDC is effectively destroyed on the source chain and recreated 1:1 on the destination chain – the US dollar reserves remain intact,” Reginatto noted in a blog post.
The CCTP network is a permissionless protocol built for developers, allowing them to benefit from this phenomenal transport primitive in USDC stablecoin.
The Circle team has advised DeFi developers to take advantage of this new feature in a bid to unlock more liquidity and enhance their overall security, and efficiency. Already, the CCTP has been incorporated by several Web3 protocols including Celer, Hyperlane, LayerZero, and LI.FI, MetaMask, Multichain, Rarimo, Router, Socket, Wanchain, and Wormhole.
CCTP for Stellar community
The Stellar network is one of the layer 0 blockchains that USDC stablecoins run through. As of today, a total of 4.5 million USDC payments with a volume of more than $3 billion have been facilitated by the Stellar network. The stellar network offers one of the cheapest and most secure rails for USDC users through centralized exchanges and digital wallets. Moreover, Stellar XLM blockchain offers fast payments per second at a fraction of transaction fees.
The stellar network has partnered with several payments companies including Moneygram to ensure seamless usage of money. Additionally, the stellar network has onboarded many NGOs including aid organizations in Ukraine to deliver help directly to affected people with less friction.
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With the CCTP protocol, the Stellar network will attract more users and in turn help derive utility for the XLM coins, used to pay for transactions.
As a result, XLM’s price, which traded around $0.095085 on Friday, could more than double with the USDC utility.
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