Austin, Texas – USDC issuer circle Internet Financial released on Wednesday a new method for moving the major stablecoins between blockchains. It claims that the new method is faster, cheaper and safer than ” bridges“, which are widely used by decentralized financial.

The “Cross-Chain Transfer Protocol” (CCTP) will initially be used for USDC transfer between the Ethereum blockchain and Avalanche, with additional chains to follow in the second half 2023. DeFi apps are able to integrate smart contract in order to allow users to easily move their stablecoins.

The technology aims to remove the barriers that currently fragment USDC’s market cap of $30 billion across multiple blockchains. Circle issued “native USDC” on many of the top networks including Ethereum and Avalanche. However, these asset tranches are more or less divided; those wanting to “bridge” this divide were forced to make complicated and expensive cross-chain transactions.

Circle’s new approach aims to replace Bridges, which fixed the problem by creating a derivative asset called a wrapped token. CCTP destroys USDC from the source chain, and recreates it on the destination.

It could be the most beneficial process when it comes time to swap assets. The process could be used behind the scenes to transfer cross-chains and cross tokens.

With CCTP, developers are able to simplify the user’s experience, and users can be confident that they will always be transacting in USDC native currency, which is highly liquid, secure and fungible. In a press statement, Joao Reginatto said that USDC is now a multi-chain digital currency.

Infrastructure providers that will be covered by CCTP at launch include Wormhole, a bridge operator, and LI.FI.

Circle could not be immediately reached for comment.

Circle CEO: USDC Stablecoin strengthened by U.S. Banking Crisis, March.

Aoyon A. Ashraf is the editor.