TL;DR
- Circle launched CCTP V2 on Stellar, enabling native USDC transfers across more than 15 blockchains, including Ethereum, Solana, and Base.
- The protocol connects XLM to the multichain USDC ecosystem, removes custodial bridges, and provides unified liquidity for DEXs and CEXs.
- Developers can integrate cross-chain transfers with metadata through Hooks, leveraging fast payments, low costs, and XLM off-ramp ecosystem.
Circle has launched its Cross-Chain Transfer Protocol (CCTP) V2 on the Stellar network, enabling USDC transfers between Stellar and more than 15 blockchains, including Ethereum, Solana, and Base. The upgrade improves interoperability and expands USDC’s use cases within the ecosystem by natively connecting liquidity across different chains.
Before CCTP V2, moving USDC between blockchains required custodial bridges or Circle accounts, and liquidity was fragmented, making dynamic asset management difficult. With the new version, Stellar becomes fully integrated into the multichain USDC ecosystem, allowing efficient access to swaps, wallets, and DeFi protocols. For DEXs, this means better rates for traders, while CEXs can consolidate liquidity instead of maintaining isolated pools.
Stellar Will Become a Liquidity Hub for USDC
CCTP V2 also introduces programmability for developers. dApps can embed USDC cross-chain transfers directly, including metadata that can trigger automated actions on the destination chain via Hooks. This makes it possible to harness Stellar’s speed, low costs, and robust off-ramping options without having to design complex multi-chain liquidity strategies, accelerating the adoption of cross-chain finance and programmable money.
Native USDC transfers use a 1:1 burn-and-mint model. Instead of relying on wrapped tokens or intermediaries, USDC is burned on the source chain and minted on the destination chain, boosting security and enabling rapid settlement. This simplifies capital movement for users and businesses, offering predictable liquidity aligned with institutional standards.
Stellar, which already enables global payments with low fees, near-instant settlement, and access to more than 475,000 MoneyGram locations for on- and off-ramping, further strengthens its role as a hub for USDC liquidity. CCTP V2 will unlock new financial services, from treasury management to cross-chain lending, while allowing other blockchains to leverage Stellar’s speed and efficiency
