Wormhole’s official website states that Circle developed the Cross-Chain Transfer Protocol (CCTP) to make it preferable to send USDC between different blockchain ecosystems using the original mint and burn process.
In a significant move forward for the Solana network, developers can now conveniently trade USDC coins that come from Ethereum and other Ethereum Virtual Machine (EVM)-compatible ecosystems, such as Arbitrum, Avalanche, Base, Optimism, and Polygon. This feature additionally functions with blockchains that aren’t EVM.
Solana Ecosystem Endorsements
In October of the previous year, CCTP was connected to a non-EVM chain. This was the start of its relationship with Noble, a Cosmos-based token protocol. This partnership made it possible for USDC to be fully integrated into the Cosmos ecosystem. It did this by using Noble’s integration with Cosmos’ inter-blockchain communication protocol (IBC), which made sure that all Cosmos chains linked through IBC would work together.
When it first came out, CCTP got backing from a number of important players in the Solana ecosystem. Some of the more well-known projects that have joined are Wormhole, Allbridge, Mayan Finance, Drift Protocol, Sphere Labs, Cube Exchange, Jupiter Exchange, and Solend Protocol. Further initiatives are expected to join in the coming weeks.
Bridging protocols like CCTP are important to the on-chain world because they make it less difficult for blockchain networks that ordinarily work alone to connect to each other. These protocols make it possible for digital products to be moved between ecosystems.
CCTP has greater advantages than standard bridging solutions because it does not depend on numerous presumptions about trust and users don’t have to pay as much for gas. Since Circle, the company that created USDC, built CCTP, it may become a better choice than third-party bridges, especially for moving stablecoins between different ecosystems.
