In a blog post released today, popular stablecoin issuer, Circle announced the launch of its cross-chain Transfer protocol, CCTP V2. According to Circle, the newly launched CCTP V2 has the potential to transform the future of cross-chain. In addition, the CCTP V2 also ensures a frictionless and secure USDC transfer between blockchains with faster-than-finality settlement and enhanced smart contract comparability.
It is worth noting that Circle’s CCTP V2 makes use of smart contract and APIs. The program is built on the enhanced infrastructure and features of CCTP V1, while introducing two all new features, Fast Transfers and Hooks. As revealed, the Fast Transfer feature process cross-chain transactions at lightning speed, irrespective of its source blockchain.
Meanwhile, the Hooks feature also allows developers to automate post-transfer actions on the destination blockchain with deeper smart contract integrations. In addition, the Circle CCTP V2 also provides support for the existing cross-chain USDC transfer speeds offered by CCTP V1, known as standard Transfer. As revealed, this standard transfer carries out transactions according to a blockchain’s standard finality time.
The Principal Product Manager at Circle, Jonathan Lim has reacted to the development. According to Lim, traditional cross-chain flows are usually riddled with additional trust assumptions, block-finality delays, and liquidity fragmentation. He added that CCTP V2 has come to mitigate these issues, paving the way for improved cross-chain UX, and institutional-grade cross-chain infrastructure for crypto capital markets.
Developers can now access CCTP V2 on Avalanche, Base, and Ethereum. Similarly leading apps such as CCTP.Money, Interport, Ll.FI, Mayan, Socket, and Wormhole have also integrated the CCTP V2.
Circle enters strategic partnership with HKT
It is worth noting that this development comes barely five months after Circle partnered with HKT to develop blockchain-powered customer loyalty solutions for Hong Kong merchants. As revealed, Circle and HKT aimed to foster more social and dynamic engagement experiences by utilizing the expertise of Circle in web3 services.
In December, Circle also partnered with renowned cryptocurrency exchange, Binance to advance global stablecoin market. According to the post, the strategic partnership made provision for the advancement of financial service ecosystem amd overall development of cryptocurrency market.
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