- Circle has enabled Cross-Chain Transfer Protocol (CCTP) support on Arbitrum.
- CCTP is one of Circle’s flagship products.
- CCTP offers multiple benefits to USDC users on Arbitrum.
The Ethereum Layer-2 ecosystem is growing fast.
Just yesterday, Circle, the issuer of the second most-used stablecoin USDC, announced that it had launched its Cross-Chain Transfer Protocol (CCTP) on Arbitrum, the most popular Ethereum Layer-2.
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Here’s what it brings to Arbitrum.
Circle CCTP’s Benefits to Arbitrum
Circle’s flagship CCTP protocol is one of the most widely used protocols in the stablecoin industry. Now it has been launched on Arbitrum.
The main benefit CCTP brings to the table is faster and more secure USDC transfers between multiple chains like Ethereum, Avalanche, and Arbitrum via native burning and minting.
For Arbitrum, this means that users will be able to transfer the recently launched native USDC token to and from Ethereum and Avalanche without significant delays.
Circle also said CCTP is now integrated natively with the official Arbitrum Bridge. Celer Network, Interport, LiFi Protocol, Router Protocol, O3 Swap, Wanchain, Wormhole, and other bridges also support CCTP on Arbitrum.
Circle is the second-largest stablecoin in the industry with a $28.1 billion market cap, according to data from CoinGecko. Arbitrum is the most popular Ethereum Layer-2 network with $5.87 billion in total value locked, according to data from L2Beat.
On the Flipside
- Arbitrum is still considered to be centralized, as is Circle.
Why This Matters
Having USDC deployed on the leading Ethereum Layer-2 network with CCTP enabled is both a sign of recognition for Arbitrum and a way to spur Ethereum adoption.
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