Circle Launches USDC Transfer Protocol
According to an April 26 announcement, Circle, the creator of US Dollar Coin, has launched a mainnet protocol that allows users to transfer USDC between Ethereum and Avalanche. Avalanche users who had USDC on Ethereum previously had to deposit their coins with a Circle partner or use a third-party bridge to transfer their USDC from one network to the other. This requirement for USDC bridges appears to be eliminated by the new Cross-Chain Transfer Protocol (CCTP).
The team stated in the announcement that it expects CCTP to solve the problem of “fragmentation” in the Web3 ecosystem.
There are currently several unofficial versions of USDC floating around on various networks, the majority of which are the result of tokens on one network being bridged to another. Now that there is an official way to transfer coins from one network to another, the team expects these unofficial copies to slowly decline in use, making the token less confusing to use.
The team said that many of the largest cross-chain protocols have already pledged to use CCTP going forward, including Celer, Hyperlane, LayerZero and others.
(With inputs from Shikha Singh)
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