USDC becomes truly multichain

In April 2025, Circle, the issuer of the USDC stablecoin, officially launched its Cross-Chain Transfer Protocol (CCTP) on Avalanche and Arbitrum, two of the most widely used Layer 1 and Layer 2 networks. This protocol allows users and developers to move native USDC directly between chains — without using wrapped tokens or traditional bridges.

CCTP is being hailed as a game-changer for multichain finance, bringing more trust, capital efficiency, and user safety to the stablecoin experience.

How CCTP works

Traditionally, when users wanted to transfer USDC from one chain to another (e.g. Ethereum to Avalanche), they had to use a bridge, which would lock their tokens on one chain and issue a “wrapped” version on the other. This introduced smart contract risk, centralization, and fragmented liquidity.

With CCTP:

• The original USDC is burned on the source chain

• Circle mints an equivalent amount on the destination chain

• All transfers are native and verifiable

• Developers can automate cross-chain flows within apps

It’s fast, permissionless, and fully on-chain.

Supported chains (so far)

• Ethereum

• Avalanche

• Arbitrum

• Optimism

• Base (support expected soon)

Circle plans to roll out support to more networks throughout 2025, including Solana and Cosmos-based chains.

Why this matters for DeFi and stablecoins

• Better liquidity: No more fragmented pools of “wrapped” vs. “real” USDC

• Improved UX: Users don’t have to worry about bridging or custodians

• Safer transactions: Circle directly manages issuance and redemption

• Programmable: DApps can build cross-chain payments, subscriptions, or asset transfers using USDC as the base

CCTP also opens the door to stablecoin-native multichain applications, like yield aggregators, games, or payment apps that need fast and reliable stablecoin flows.

Early adoption and integrations

DeFi apps like GMX, Trader Joe, Aave, and Curve are already exploring or integrating CCTP to improve user experience and liquidity across chains. Wallets such as Rainbow, Zerion, and Phantom are also planning UI support for native USDC transfers.

Conclusion: Circle’s CCTP sets a new standard for stablecoin mobility

By eliminating the need for bridges and wrapped assets, Circle is redefining how value moves across blockchain networks. With CCTP, USDC becomes a truly omnichain stablecoin, unlocking faster, safer, and more flexible financial applications — and bringing Web3 one step closer to mainstream usability.