Cosmos Opens Doors To Circle's Native USDC Through CCTP

Circle USDC/USD, the issuer of USDC, plans to venture out on Cosmos through its cross-chain transfer protocol system.

This is expected to make transfers seamless and benefit USDC's market cap.

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What Happened: September saw USDC's integration with Polygon network, launch on Polkadot network, and expansion on NEAR.

At the Cosmoverse conference, Circle announced that it will implement its cross-chain transfer protocol (CCTP) with a Cosmos-based token protocol, Noble. This marks the first-ever integration with a non-Ethereum Virtual Machine (EVM) chain.

Also Read: Circle Argues Stablecoins Are Not Securities, Files Friend of Court Brief In Binance-SEC Case

With Noble already integrated with the Cosmos Inter-blockchain communication protocol (IBC), CCTP’s functionality will be extended to all Cosmos chains that are connected to IBC thereby eliminating the need for bridges when transacting USD Coin. Current USDC users on EVM chains can transfer their tokens to Cosmos chains merged with IBC without using a bridge.

Before the launch of the mainnet in late October, a testnet will be available for ecosystem participants who seek to test out CCTP’s cross-chain functionality.

Why It Matters: The highlight of this design is that USDC transfers are possible with just one click.

“What you’ll be able to do with CCTP when it’s live is you’ll be able to send it to a burn address on Ethereum, where Circle’s API is watching and will issue an attestation of burn that gets relayed to the destination chain,” Noble co-founder Stefan Coolican said as reported by Blockworks.

Coolican co-founded Noble with Jelena Djuric.

Currently, the second largest stablecoin by market cap, USDC has a circulating supply of almost $25 billion as per DeFiLama data. Of the total, $20 billion is Ethereum.

Read Now: Circle's USDC Expansion On NEAR Signals Resilient Multi-Blockchain Future

Cosmos Upgraded: Interoperability for Cosmos with Ethereum and several other blockchain networks will be possible with the addition of CCTP to Noble. It will enable developers to bring USDC users on board to their appchains from outside the ecosystem.

While the Cosmos ecosystem is new and innovative, it is yet to see the presence of stablecoin. With the USDC presence, Cosmos will now have access to a highly liquid and widely recognized stablecoin. Higher institutional interest in the space is likely to strengthen the overall market cap of USDC.

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