Circle CCTP

Burn-and-Mint Mechanism

CCTP’s core innovation is its burn-and-mint mechanism, which replaces the traditional lock-and-mint approach. Here’s how it works:

1. Initiation: A user initiates a transfer of USDC from a source blockchain to a destination blockchain through an application integrated with CCTP.
2. Burning on Source Chain: The application burns the specified amount of USDC on the source chain.
3. Attestation: Circle observes the burn event and issues an attestation, which is a proof that the burn has occurred.
4. Minting on Destination Chain: The application uses the attestation to mint an equivalent amount of USDC on the destination chain, transferring it to the recipient’s wallet.

This process ensures that the USDC remains fully backed and fungible across all supported chains without creating synthetic versions of the token.

Supported Blockchains and Integrations

CCTP is available on multiple blockchains where USDC is natively issued, including Ethereum, Avalanche, Solana, and others. It is integrated with leading wallets, bridges, and infrastructure providers, such as MetaMask, XDEFI Wallet, and various bridge platforms.