Circle has expanded its Cross-Chain Transfer Protocol (CCTP) to support issuer-operated ERC-20 tokens on Arc. The update allows developers to transfer assets between supported blockchains without depending on separate bridges or wrapped token versions.
Summary
- Circle has explained how developers can use CCTP on Arc to move issuer-operated ERC-20 tokens between supported blockchains without creating wrapped copies or using separate bridges.
- Developers can launch new crosschain tokens through Circle’s native service or connect existing ERC-20 tokens using custom configurations.
- Transfers follow a burn-and-mint process. Circle’s Iris service verifies the transaction before the corresponding tokens are created on the destination blockchain.
- Token issuers maintain control over administrative permissions, transfer limits, and maximum transaction amounts.
- Circle’s Forwarding Service can complete transfers without requiring recipients to pay destination network gas fees, as long as the required service charges are included in the initial quote.
In an October 30 developer update, Circle explained that token issuers can either create new crosschain assets or connect existing ERC-20 tokens to CCTP. Both options use infrastructure originally developed for USDC transfers.
The company outlined two integration methods covering newly created tokens and existing assets controlled by their issuers. Both rely on a burn-and-mint process. Tokens are destroyed on the source blockchain and recreated on the destination network after the transfer is verified.
Circle said the functionality is designed for applications involving payments, collateral, tokenized real-world assets, and treasury operations across multiple blockchains.
Circle expands CCTP support beyond its own tokens
Until recently, CCTP was mainly used to transfer Circle-issued assets between supported blockchains, particularly USDC, which introduced the protocol’s burn-and-mint transfer model.
Circle later expanded CCTP beyond USDC, adding support for its euro-backed EURC stablecoin and cirBTC on selected blockchain routes in September.
The latest developer guidance explains how other token issuers can use the same messaging and verification infrastructure for their own ERC-20 assets.
During a transfer, tokens are first burned on the source blockchain. Circle’s Iris service then verifies the transaction and generates an attestation. The destination blockchain uses this verified message to mint the corresponding amount of tokens.
Developers can handle the destination transaction themselves or use Circle’s Forwarding Service to complete the transfer automatically.
For third-party tokens, transfers are managed through CrossChainTokenService and a dedicated token manager. Standard USDC transfers continue to use TokenMessengerV2.
Circle said each supported blockchain has its own token contract and balances, while the assets maintain a shared identity for crosschain transfers.
Developers can create new tokens or connect existing assets
Circle’s framework offers two options depending on whether a token issuer is launching a new asset or already has an ERC-20 token.
For new assets, developers can deploy a native CrossChainToken through Arc’s CrossChainTokenService. This creates both the token contract and a dedicated manager responsible for handling crosschain operations.
The system generates a shared token identifier using the deployer’s wallet address and a selected salt value. Developers can use the same details when deploying the token on another supported blockchain.
Issuers with existing tokens can register them as custom CCTP assets without replacing their original ERC-20 contracts.
However, they must configure the token on every blockchain involved in the transfer route, including the required permissions and burn-and-mint settings.
Issuers remain responsible for assigning ownership, operator, and pauser roles. They can also set transaction limits and decide the maximum amount that can be transferred.
Both approaches require matching token decimals across supported networks and compatible configurations between the services handling transfers.
Circle also provides a separate configuration option for tokens whose issuers do not control the contracts. However, this setup does not use the same burn-and-mint process.
Arc testnet supports crosschain token deployment
Circle’s developer guide explains how users can deploy a native token on Arc Testnet and connect it to another supported EVM blockchain.
The process starts with a reusable deployer address, token details, and Arc Testnet USDC to cover transaction and service fees.
After deploying the initial contract, developers receive a token identifier and request a fee quote from Iris before deploying the corresponding token on the destination blockchain.
Transfer limits can be set during deployment or adjusted later through the token manager. Circle warned that leaving these limits at zero will prevent transfers from taking place.
Once the initial supply has been minted, developers approve the token manager and submit a crossChainTransfer transaction. The destination contract then creates the corresponding tokens after receiving the required verification.
Circle’s Forwarding Service can handle the final delivery without requiring recipients to pay gas fees on the destination network. However, the applicable service charge must be included in the original fee quote.
Circle introduced prepaid CCTP fees in September, allowing developers to collect supported transfer charges on the source blockchain.
The company said recipients receive the full token amount when the required fees are paid separately. Actual charges depend on the blockchain pair and the quote obtained before the transfer.
Circle continues building Arc’s financial infrastructure
The latest CCTP update follows the September 16 launch of Arc’s mainnet. Circle introduced the Layer 1 blockchain with USDC-based transaction fees and deterministic finality.
Arc launched with institutional validators and support for multiple stablecoins and tokenized financial products.
Circle later introduced Arc Studio, an AI-powered development tool that can help users create smart contracts and applications through natural language instructions.
With CCTP support for third-party tokens, developers now have another way to manage assets used for payments, settlement, collateral, and treasury operations across supported networks.
Before moving tokens into production, Circle recommends checking administrative permissions, transfer limits, and contract addresses on every supported blockchain.
The company also said developers must obtain fresh Iris fee quotes when adding new blockchain routes. Token issuers remain responsible for the assets they create and for meeting the regulatory requirements that apply to their services.