Circle moved the cross-chain protocol (CCTP), which is used by Cosmos, to Noble’s mainnet. This allows USDC to be minted natively within Cosmos’ inter-blockchain communications protocol (IBC).
Circle aims to increase the usefulness of USDC by facilitating cross-chain transaction. This could help to end a long slump in USDC’s market capitalization.
Noble has joined the ranks of other cryptocurrencies such as Arbitrum, Avalanche and Base. Ethereum, Optimism, Ethereum, Avalanche. CCTP runs on Solana testnet.
Circle’s cross chain protocol allows users to generate Noble USDC, which they can move into Cosmos apps such as Osmosis or DYdX. MintScan reports that the total supply of Noble USDC has already surpassed $20 million.
CCTP uses a “burn-and-mint” mechanism that facilitates the creation of USDC natively across multiple blockchains. This process removes USDC from the circulation of the source blockchain (burned), and creates it (mintes) on the recipient chain based on Circle’s verification.
This method, which focuses on a direct asset transfer in comparison to token bridging (where assets are secured on one blockchain in exchange for tokens wrapped in the same currency on another), is more effective. Over time, the direct mint-and-burn method appears to be gaining popularity. This is especially true in light multiple hacks involving token bridging.
Circle says that users must use Noble to transfer USDC out of Cosmos using Circle’s protocol. Circle states that users can’t transfer funds into a Circle Account from another app within the IBC. “could result in a loss of funds.”
USDC’s current market cap has been in a steady decline for over a full year, since the peak of $55 Billion in mid-2022. According to DeFiLlama, USDC has a current market capitalization of $23,68 billion. The only stablecoin bigger than USDC is Tether (USDT), which has grown in value from $66 to $88 billion during the same period.
Circle, a centrally-controlled company has invested in an permissionless protocol that runs across multiple blockchains. This is part of a trend where centralized crypto companies are enhancing their DeFi (decentralized finance) services.
Bloomberg reported recently that Circle was considering a public debut in 2024.
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