Circle has introduced an upgrade of its cross-chain transfer protocol, enabling the settlement of USDC transactions within seconds.
Developers can now tap into the new version of the cross-chain transfer protocol for USDC (USDC) transfers that will settle in seconds, Circle said in an announcement.
Circle achieves the enhanced CCTP v2 through two key features: Fast Transfer and Hooks.
The new fast transfer feature will reduce USDC settlement times from as high as 15 minutes on Ethereum (ETH) and layer-2 networks to just seconds. CCTP v2 will offer this capability regardless of the transaction’s source blockchain.
Apart from faster-than-finality settlement, v2’s Hooks feature also enhances composability for smart contracts. This means developers can automate post-transfer actions on the chain receiving the USDC transfer.
“Traditional cross-chain flows are often riddled with additional trust assumptions, block-finality delays, and liquidity fragmentation,” Jonathan Lim, principal product manager at Circle, said.
“CCTP V2 mitigates these issues, and paves the way for improved cross-chain USDC liquidity, enhanced cross-chain UX, and institutional-grade cross-chain infrastructure for crypto capital markets.”
The upgrade to CCTP comes a few days after Circle added support for passkeys to its Modular Wallets, which the company said would help unlock a better transaction experience for USDC users. Passkeys allow developers to enable easy user onboarding and offer secure USDC transactions. The key improvement lies in enhanced authentication flows, the firm noted.
According to Circle, CCTP v2 will still support the cross-chain transfer speeds for USDC currently available via CCTP v1. This Standard Transfer time allows transactions to settle according to the finality time of the given blockchain.
Supported networks and future expansion
v2 launches with initial support for the Avalanche, Base, and Ethereum networks. The company plans to expand the features to more chains. Meanwhile, Wormhole, Mayan, Interport, and Socket are among the top apps, bridges, and infrastructure platforms that have already integrated CCTP v2.
Circle introduced its cross-chain transfer protocol in April 2023, and it has since gained adoption across the ecosystem. Integration across leading blockchain networks and protocols has contributed to its growth.
