Circle has introduced an update to the Cross-Chain Transfer Protocol (CCTP V2), reducing the processing time for cross-network USDC transactions from 13–19 minutes to just a few seconds.

CCTP V2 is an enhanced version featuring a new set of smart contracts and APIs, accelerating the movement of the stablecoin between Ethereum and L2 networks.

Circle’s Head of Product, Nikhil Chandhok, highlighted that the update simplifies cross-chain transfers and makes them suitable for low-latency scenarios, such as capital markets in crypto.

Since CCTP’s launch in 2023, it has processed over $36 billion in transaction volume.

The first version of the protocol will continue to operate on 11 blockchains, but Circle plans to add more networks to CCTP V2 throughout the year.

Among the new features, the Hooks mechanism stands out, allowing developers to automate actions after transferring to the target blockchain.

USDC remains the second most popular stablecoin, with a market capitalization of $58 billion, according to CoinGecko. The leading stablecoin, USDT by Tether, maintains its dominance with a market cap of $142.9 billion.

In 2024, USDC’s circulation grew by 78%, and the total transaction volume since its launch surpassed $20 trillion.