Circle To Allow Users Move USDC Between Avalanche And Ethereum
1/ Today marks a new milestone! Cross-Chain Transfer Protocol (#CCTP) is now on mainnet for @Ethereum and @Avax. https://t.co/ExIAWywNGt
CCTP: No Bridge, No Problem
CCTP works by burning USDC tokens on one chain, Ethereum for instance, and minting the equivalent token amount on another chain like Avalanche. This allows users to move USDC between blockchains, essentially increasing Circle’s multi-chain utility.
The protocol improves security by opting for a more crypto-native mechanism of burning and minting. Prior to the protocol’s release, users would have to rely on cross-chain bridges that leverage “wrapping”, a method with loopholes that cyber criminals exploit in some cases.
CCTP removes the need to bridge USDC via traditional lock-and-mint approaches, improves liquidity across the blockchain ecosystem, and enables developers to provide their users a seamless and secure experience moving USDC natively across chains.
USDC is a crucial off-ramp tool that allows crypto users to cash out from their virtual currencies into fiat like the U.S. dollar. Stablecoins like USDC and USDT also provide a cushion to soften market volatility, making it possible to users and traders to retain monetary value in the case of market meltdowns.
Circle Upgrade’s Structure After US Banking Crisis
Investor confidence in Circle and its USDC stablecoin dipped after Silicon Valley Bank suffered a bank run in March, trapping around $3.3 billion in USDC reserves over a weekend. The matter was later resolved although Circle’s token temporarily its peg to the U.S. dollar.
USDC’s reserve fell some $10 billion since the debacle but Circle CEO Jeremey Allaire insists that the company has come out stronger. Allaire shared these remarks during the CoinDesk Consensus conference in Austin, Texas.
We’ve successfully navigated this crisis, and have actually upgraded the market infrastructure behind USDC to be by far the strongest, safest digital dollar on the internet today, hands down, there’s no question.
Source: Read Full Article