Cosmos will support USDC’s CCTP, which is already operational on the testnet.
Upgrades are being made to Cosmos’ native USDC.
Circle, the business that issued USDC, declared today at the Cosmoverse conference that it will integrate Noble, a Cosmos-based token technology, into its cross-chain transfer protocol (CCTP).
On the Cosmoverse main stage, Circle’s engineering director Marcus Boorstin showed the usage of CCTP for USDC transfers by transferring money from Avalanche to Noble via Metamask in a testnet scenario.
According to Boorstin, this will be the first time CCTP has been connected with a chain that is not an Ethereum Virtual Machine (EVM).
Simpleness is a fundamental component of the design, according to Noble co-founder Jelena Djuric, who stated that USDC transactions can be made in “basically one-click.”
The capability of CCTP will be extended to all Cosmos chains that are connected to IBC since Noble itself is integrated with the Cosmos Inter-blockchain communication protocol (IBC), doing away with the requirement for bridges when transferring USD Coin (USDC).
Additionally, according to Noble co-founder Stefan Coolican, customers who presently possess USDC on EVM chains may transmit their tokens directly to Cosmos chains that are connected with IBC without the requirement of a bridge.
“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,” explained Coolican.
It’s a quick, affordable method to integrate native USDC into any Cosmos-based application, continued Coolican.
Before the official mainnet launches later this month, a testnet will be accessible to ecosystem players that are keen to try out CCTP’s cross-chain features.
According to DeFiLama, USDC has a circulating supply of nearly $25 billion and is now the second-largest stablecoin by market cap. Of this total, about $20 billion is spent on Ethereum. There is now a small stablecoin market within the Cosmos ecosystem. Since September 12, it has been operational on the Cosmos mainnet.
“Noble’s role as an asset issuance hub for Cosmos enables USDC to proliferate seamlessly throughout the ecosystem via IBC,” said Rachel Mayer, vice president of product at Circle, to Blockworks. With the addition of CCTP to Noble, we are able to address Cosmos’ interoperability issues with Ethereum and a number of other blockchain networks, allowing developers to enroll USDC users into their appchains from outside the ecosystem.
