Circle has enabled the protocol for stablecoin transfers between Ethereum and Avalanche.
Circle has released the Cross-Chain Transfer Protocol (CCTP) for the Ethereum and Avalanche chains. With this move, users will be able to transfer stablecoins between the two networks via Circle.
Move for Stablecoin Transfer Between Circle, Ethereum, and Avalanche
After the bankruptcies in the USA, Circle came to the fore with its funds in bankrupt banks. After the news, Circle’s stablecoin USDC lost its peg to the dollar. However, the company shared with its users the information that the funds in the troubled banks were recovered. Following the announcement, USDC regained its dollar peg.
Circle, creator of USD Coin (USDC), will release the Cross-Chain Transfer Protocol (CCTP) for Ethereum and Avalanche chains, allowing users to move their USDC stablecoins between the two Blockchains.
According to the official developer FAQ page, this protocol will burn local USDC on one chain and print the same amount on the other. Thus, users will be able to transfer USDC between two chains.
1/ Today marks a new milestone! Cross-Chain Transfer Protocol (#CCTP) is now on mainnet for @Ethereum and @Avax. https://t.co/ExIAWywNGt
— Circle (@circle) April 26, 2023
Circle wrote in a tweet on the matter:
“CCTP removes the need for traditional locking and bridging USDC. It increases liquidity in the blockchain ecosystem and enables developers to provide users with a seamless and secure experience of moving USDC locally across chains.”
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