Circle Rolls Out CCTP V2 On Solana, Enabling Fast, Secure Cross-Chain USDC Transfers
In Brief
Circle has launched Cross-Chain Transfer Protocol V2 on Solana, enabling near-instant USDC transfers with smart contract automation and expanded multichain interoperability.
Payments infrastructure provider and USDC stablecoin issuer Circle announced the launch of Cross-Chain Transfer Protocol Version 2 (CCTP V2) on the Solana blockchain, extending its stablecoin infrastructure across additional networks.
This integration enables fast cross-chain USDC transfers, with settlement occurring within seconds. It also introduces support for smart contract hooks that allow for customizable post-transfer actions, while maintaining capital efficiency through a native burn-and-mint mechanism that eliminates the need for liquidity pools or intermediary assets. Security is upheld through Circle’s infrastructure, without introducing new trust assumptions.
Current adopters of the integration include applications and platforms such as 1 Click USDC, Interprofit Finance, and Router Protocol, with broader ecosystem participation expected to follow.
With this update, Solana joins a broader network of CCTP V2-enabled chains, including Arbitrum, Avalanche, Base, Ethereum, Linda, Optimism mainnet, Sonic, and World.
What Is CCTP V2?
CCTP is a permissionless onchain mechanism designed to facilitate secure USDC transfers across different blockchain networks through a native burn-and-mint process. Developed by Circle, the protocol enhances capital efficiency while reducing the need for intermediary trust when moving USDC between chains. CCTP supports the creation of multichain applications that allow users to conduct one-to-one USDC transfers between networks in a secure manner.
The protocol is available in two iterations: CCTP V1 and CCTP V2. While both versions enable cross-chain USDC transfers, they differ in capabilities. CCTP V2 introduces additional features such as Fast Transfer, which reduces transaction time by allowing transfers to occur at speeds faster than typical network finality, and Hooks, which provide developers with the ability to automate actions following a cross-chain transfer. These enhancements build on the standard transfer functionality already offered in CCTP V1.
CCTP V2 is built on a separate infrastructure with its own smart contracts and application programming interfaces (APIs), forming a distinct network that is not backward compatible with the V1 version. Nonetheless, developers can integrate both versions in a way that maintains a cohesive user experience and broadens access across supported ecosystems.
Before the official rollout, Circle introduced a new pre-mint address to support the programmatic minting of USDC on Solana through the CCTP. This infrastructure enables the protocol to efficiently initiate USDC issuance within the Solana network. For exchanges and platforms that monitor Solana’s USDC circulation, existing public APIs provided by Circle remain functional, and no modifications are necessary.
On certain non-EVM chains like Solana, Circle utilizes a pre-minting approach, where a designated address holds USDC that has been generated but is not yet classified as part of the active circulating supply. This reserve remains inactive until Circle formally authorizes the minting, at which point it becomes part of the total supply in circulation.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
