Stargate Defi Adopts Circle's CCTP for Direct USDC Transfers

Stargate, a protocol for moving liquidity across different blockchains, has revealed its integration with Circle's cross-chain transfer protocol.

In a statement made on Mar. 19, Stargate (STG) described the integration of Circle's Cross-Chain Transport Protocol (CCTP) as a significant advancement.

According to the information provided by the platform, CCTP will enable native USDC (USDC) transfers for Stargate Finance's users. CCTP, which Circle recently updated to improve its capabilities, will facilitate the transfer of native USDC across various supported networks for Stargate users.

As a result, users on Ethereum, Solana, and Aptos, as well as layer 2 scaling solutions Base, Optimism, and Arbitrum, will enjoy 1:1 capital efficiency. CCTP on Stargate will also enable native USDC transfers between the decentralized finance protocol and Avalanche and Polygon.

"By incorporating Circle's CCTP, Stargate broadens its reach and capacity to cater to more users and ecosystems, with effortless value transfer," the protocol stated on X.

Stargate's integration of CCTP comes shortly after Circle introduced an upgraded version of the cross-chain transport protocol. The introduction of CCTP v2, according to Circle, offers an enhanced version of the solution, with the primary improvement being the reduction of transaction times for transfers to Ethereum and layer 2s from minutes to seconds.

Typically, such transactions have taken 13-19 minutes. However, CCTP v2 reduces this to seconds through the Faster Transfer feature. Circle's Hooks feature also enhances overall efficiency with automatic swaps and treasury management.

"The launch of CCTPv2 represents a huge step forward in creating fast, secure, and easy-to-use financial applications on-chain. It enables cross-chain USDC movement in seconds (fast finality), new developer hooks to connect automation and composability with transfers, and high security," Jeremy Allaire, co-founder and CEO of Circle, said at the time.

Recently, bridged USDC Standard went live on Story, the Stargate Hydra chain that enables the tokenization of intelligence. Utilizing bridged USDC will allow developers to keep building high-quality dApps while users benefit from value transfer across the blockchain network.

The deployment implies that users can utilize the bridged version of the stablecoin to transfer value from and to more than 30 networks connected to Stargate.