Circle stated on April 26 that the Cross-Chain Transfer Protocol (CCTP) is now operational on major networks. Additionally, this technology supports permissionless USDC transfers across compatible blockchains.
According to the company’s blog post, CCTP allows USDC to be “teleported” between chains. Stablecoins are thus “effectively destroyed on the source chain and regenerated 1:1 on the destination chain.”
Furthermore, Circle Product Vice President Joao Reginatto stated that the company’s US dollar reserves are still intact. “CCTP is a permissionless protocol designed for developers to take advantage of this phenomenal transport primitive.”
Developers will be able to create applications that support multiple native versions of stablecoins. USDC is now available on eight different networks, according to the release. Ethereum, Solana, Avalanche, TRON, Algorand, Stellar, Flow and Hedera are some of them.
Furthermore, CCTP has been integrated by a number of crypto infrastructure providers. Celer, Hyperlane, LayerZero, LI.FI, MetaMask, Multichain, Rarimo, Router, Socket, Wanchain and Wormhole are some of them.
The technology moves Circle one step closer to “an open dollar developer platform that serves as the foundation for moving money across the internet,” according to Reginatto, who goes on to say that “CCTP is the most ambitious piece of neutral market infrastructure that Circle has built since introducing USDC in year 2018.”
USDC is the second most popular stablecoin after Tether (USDT). However, unlike its rivals, which have increased supply this year, the amount of USDC in circulation has decreased. Circle estimates that the current supply of USDC is $31 billion. In addition, it has fallen 30% since the start of the year and 45% from an all-time high.
Moreover, USDC’s market share fell to 23.5%, with Tether controlling 62% of the stablecoin market.
Circle CEO Jeremy Allaire has issued a warning about the increasing de-dollarization trend. In addition, more and more countries, particularly in Asia and Latin America, are abandoning the dollar.
Allaire stated last week at a crypto conference, “We are doing a very active de-dollarization.” “You’re having a very significant backlash against the US, risks in the US banking system, risks with the US government itself,” Allaire added, urging the government to accelerate stablecoin regulation and issue digital dollar CBDCs. Failure to do so, he said, would be a “great missed opportunity” for the country.