Circle has unveiled CCTP v2, an upgraded version of its cross-chain transfer protocol, enabling near-instant USDC transactions. This update significantly enhances settlement speed and smart contract composability, marking a major improvement in cross-chain liquidity and user experience.

Near-Instant USDC Settlement with CCTP v2

Fast Transfer and Hooks unlock new transaction capabilities

The CCTP v2 upgrade introduces two major enhancements:

• Fast Transfer: Reduces USDC settlement time from 15 minutes to just seconds, regardless of the source blockchain.
• Hooks: Enhances smart contract composability, allowing developers to automate post-transfer actions on the destination chain.

“Traditional cross-chain flows are often riddled with trust assumptions, block-finality delays, and liquidity fragmentation,” said Jonathan Lim, Principal Product Manager at Circle. “CCTP v2 mitigates these issues and enhances cross-chain infrastructure for crypto capital markets.”

Strengthening the USDC Ecosystem

CCTP v2 ensures greater liquidity and seamless cross-chain transactions

The faster-than-finality settlement improves:

• Cross-chain USDC liquidity by reducing transaction bottlenecks.
• User experience (UX) for faster and more reliable transfers.
• Institutional adoption with a robust and scalable cross-chain infrastructure.

This development follows Circle’s recent rollout of Modular Wallets with passkey support, aimed at enhancing authentication and security for USDC users.

Supported Networks and Expansion Plans

CCTP v2 launches with key blockchain integrations

The protocol currently supports:

• Ethereum (ETH)
• Base (Coinbase L2)
• Avalanche (AVAX)

Circle plans to expand CCTP v2 to additional blockchains in the near future. Meanwhile, major crypto infrastructure platforms such as Wormhole, Mayan, Interport, and Socket have already integrated the new protocol.

The Future of Cross-Chain USDC Transactions

A game-changer for DeFi and crypto payments

Since its launch in April 2023, CCTP has seen wide adoption across major blockchain networks. The introduction of CCTP v2 strengthens Circle’s position in the crypto payments space, offering:

• Faster and more efficient cross-chain settlements.
• Greater integration across decentralized finance (DeFi) protocols.
• Enhanced security and automation for USDC transfers.