Circle Floats CCTP to Enable USDC Movement on Arbitrum – Crypto News – Crypto News
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Circle Floats CCTP to Enable USDC Movement on Arbitrum Circle Floats CCTP to Enable USDC Movement on Arbitrum

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Circle Floats CCTP to Enable USDC Movement on Arbitrum – Crypto News

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2 years ago

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Weeks after launching USDC on Arbitrum, blockchain startup and stablecoin issuer, Circle has declared the launch of its Cross Chain Transfer Protocol (CCTP) on Arbitrum in a bid to help boost the easy movement of the stablecoin on the Ethereum Layer-2 scaling network.

The CCTP Advantage over Arbitrum

Circle created the CCTP to enable the USDC stablecoin to move freely in and out of blockchains to open up more accessibility to traders across the board. The CCTP brings a boatload of benefits to give it a competitive edge which includes capital efficiency.

There is no denying the fact that capital fragmentation impacts the efficacy of USDC utilization which also impacts the experiences of the end users. The CCTP protocol solves this challenge as apps using ‘CCTP can essentially teleport native USDC from one chain to another, providing users with a highly capital-efficient way to transact in a multi-chain world’.

With the growing competition in the stablecoin ecosystem, the positioning of USDC had to be reinforced by creating an avenue through which pieces of the stablecoin on different chains can be pooled together.

The CCTP is also designed to be composable and permissionless, two among its unique features that can become highly valuable for developers looking to integrate it. The use of the CCTP is simple and while it is designed with compatibility across different bridges, it currently supports just the MetaMask non-custodial wallet.

With the CCTP, Decentralized Applications (DApps) and smart contracts building on Arbitrum will also be able to leverage it to build Cross-Chain Swaps, Cross-Chain Deposits as well as Cross Chain Purchases amongst others.

Potential Impact on Arbitrum Price

USDC and its ecosystem is a very large one that can help drive demand on protocols like Arbitrum, hence helping in stirring the price of the protocol in the mid to long term. The Circle CCTP protocol is designed to help revolutionize Arbitrum-based smart contracts and DApps that will be adopting it, and this embrace can help push the demand for ARB to a new pedestal.

The deep liquidity that USDC boasts of which the CCTP will also bring in from other protocols is also a bullish factor that can help the L2 protocol sustain its current price while gradually positioning for an imminent leap in the long term.

At the time of writing, the news appears to be fueling the growth of ARB which is changing hands at a spot price of $1.21, up 4.28% in the past 24 hours.

Mooky

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Benjamin Godfrey is a blockchain enthusiast and journalist who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, LinkedIn

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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