Circle, the issuer of the blockchain ecosystem's second largest stablecoin USD Coin (USDC), has unveiled the launch of the Cross Chain Transfer Protocol (CCTP) on Arbitrum, a tool that facilitates the easy movement of the token to the Ethereum-based Layer 2 scaling network.
1/ Moving $USDC natively to @Arbitrum just got that much easier. Cross-Chain Transfer Protocol (#CCTP) is now live on Arbitrum, enabling direct transfers to-and-from @Ethereum and @Avax. #BuildOnCircle https://t.co/ry7mMMYFvX— Circle (@circle) June 27, 2023
The CCTP protocol is a permissionless on-chain utility that facilitates USDC transfers between blockchains via native burning and minting. The tool was designed to make transacting in USDC easy while exposing it to more ecosystems to bolster its liquidity across the board.
Benefits of CCTP tool on Arbitrum
While simplicity and ease of use remains at the forefront of the design of the CCTP protocol that is now live on Arbitrum, there are other associated perks. According to insights shared by Circle, the CCTP protocol is designed to solve issues of liquidity fragmentation and poor user experiences caused by unofficial, bridged versions of USDC floating around the ecosystem.
The ability of users to move USDC across any chain remains a viable way to harness capital across the board. Despite the CCTP being built to make life easy for end users, it was also created as a low-level primitive for developers to leverage and extend.
The CCTP works with MetaMask and supports a host of bridges, including Interport, Wormhole and wanchain, among others.
Driving USDC interoperability
In a bid to serve its existing users and also to expand its influence in the Web3.0 ecosystem, the USDC stablecoin has been inking new partnerships that are aimed at bolstering the interoperability of the token.
As reported earlier by U.Today, Coinbase Wallet, one of most popular tools for storing and sending cryptocurrency, made USDC transactions on Polygon gas-free. While still lagging behind its closest rival USDT, the USDC stablecoin has grown its capitalization, ranking and relevance among traders in the industry.