P2P payments company Circle has rolled out a new protocol for hosting more secure, user-friendly, efficient, and growth-capable apps designed on USDC.
According to the company’s CEO, the CCTP from Circle is due to be introduced soon. Jeremy Allair, Circle’s chief executive officer announced the Cross-Chain Transfer Protocol on Twitter. The new protocol will be used to improve apps designed on USDC.
Circle’s CCTP is nearing its announced launch date. CCTP is going beyond native USDC locked on a chain, which comes with inherent risks to security. Also, a bridged or synthetic version of USDC minted on a destination chain often develops liquidity fragmentation and an unsatisfactory customer experience. Instead, CCTP works to get rid of these traditional methods.
Circle’s infrastructure will be launched via smart contracts. This process will burn USDC native to source chains and create a similar amount on target chains. As stated by the company, this enables users to benefit from a capital-efficient method to make USDC transfers cross-chain.
As official data reveals, in the week between the 12th of January and the 19th of January, Circle minted 5.6 billion USDC in total, saved 6.5 billion, and USD 900 million disappeared from circulation. Since the 19th of January, there were USD 43.1 billion worth of USDC in circulation with USD 43.2 billion in reserves. This includes USD 9.5 billion in cash and US treasury bonds worth USD 33.7 billion.