Circle has expanded the support of its cross-chain transfer protocol (CCTP) infrastructure for ERC-20 tokens operated by issuers on Arc, allowing developers to transfer assets between supported blockchains without relying on separate bridges or encapsulated token copies.

Circle outlines how developers can use CCTP on Arc to transfer ERC-20 tokens operated by issuers between supported blockchains, without relying on encapsulated tokens or separate bridges.

• Developers can deploy new cross-chain tokens through the native services of Circle, or use custom token configurations to integrate with existing ERC-20 assets.
• Cross-chain transfers utilize a burning and minting process. The Iris service for Circle will verify the transaction before the corresponding token is minted on the target network.
• When configuring cross-chain assets, the token issuer retains control over management permissions, transfer limits, and the maximum amount per transaction.
• If the relevant service fees are already included in the initial quote, the transfer of Forwarding Service of Circle can be completed without the payee having to pay the target chain gas fees.

In a developer update on October 30th, Circle explained that token issuers could use the same infrastructure previously developed for transfers of USDC to create new cross-chain assets, or to integrate existing ERC-20 tokens into CCTP.

The company listed two integration methods, which cover both newly issued tokens and existing assets controlled by the issuers. Both methods employ a burning and minting process, where the tokens are first destroyed on the source chain, and then re-generated on the target chain after the transfer is verified.

Circle indicates that this feature is aimed at applications that handle payments, collateral, tokenization of real-world assets, and treasury operations across multiple networks.

Circle extends CCTP interoperability to third-party tokens

Until recently, CCTP was mainly related to the transfer of assets issued on Circle between supported blockchains, especially USDC, which was the first to introduce the burn and mint mode for this protocol.

Circle Since then, the support range for CCTP has been extended beyond USDC, and in September, support for its euro-denominated stablecoins EURC and cirBTC was added on certain blockchain routes.

The latest developer guide explains how issuers can use the same messaging and verification infrastructure to handle their own ERC-20 tokens.

Under this process, the tokens are first burned on the source blockchain, followed by the Iris service of Circle verifying the transaction and generating a proof. The target network then uses the verified message to mint a corresponding number of tokens.

Developers can complete the target chain transactions on their own, or they can use Forwarding Service of Circle for automatic processing and delivery.

For third-party assets, transfers are conducted through CrossChainTokenService and a separate token manager; whereas for standard USDC transfers, TokenMessengerV2 is used.

Circle indicates that each supported blockchain maintains its own token contract and balance, but these assets share a unified token identity during cross-chain transfers.

Developers can create new tokens or integrate with existing assets.

The framework for Circle offers two options depending on whether the issuer intends to launch a new token or is already operating an existing ERC-20 asset.

For newly created assets, developers can deploy native CrossChainToken through CrossChainTokenService of Arc. This deployment will simultaneously create a token contract and a dedicated manager responsible for cross-chain operations.

The system will use the deployer's wallet address and the selected salt value to generate a shared token identifier. Developers can reuse this information when deploying the token on another supported blockchain.

Existing token issuers can register their assets as custom CCTP tokens, without the need to replace the existing ERC-20 contract.

Circle Requirers who adopt this method must complete token configuration on each blockchain involved in the transfer path, including necessary permissions as well as burn and mint settings.

The issuer is still responsible for assigning roles such as owner, operator, and suspender, setting transaction limits, and determining the maximum amount that can be transferred.

Both methods require compatibility of token decimal places between different networks, and there must be mutual trust between the services responsible for the transfers.

Circle also provides separate configuration options for tokens whose contracts are not controlled by the issuer, but this arrangement does not use the same burning and minting mechanism.

Arc testnet Supports cross-chain deployment and transfer

Circle publishes operation guide instructions. Developers can first deploy native tokens on Arc Testnet, and then connect them to another supported EVM blockchain.

The process begins with a reusable deployer address, token details, and Arc Testnet USDC which is used to pay for transaction and service fees.

After the initial contract deployment is completed, developers will receive a token identifier. Before deploying the corresponding tokens to the target blockchain, they must first apply for a fee quote by contacting Iris.

The transfer limits must be configured through the token manager at the time of deployment or thereafter. Circle indicates that if these limits remain zero, transfers will not be possible.

After the initial supply is minted, developers need to approve the token manager and submit a crossChainTransfer transaction. The target contract will then mint tokens upon receiving the required proofs.

If the relevant service fees are already included in the initial quote, the delivery of Forwarding Service by Circle can be completed without the payee having to pay the target chain gas fees.

The company previously launched a prepaid CCTP fee mechanism in September, allowing developers to charge supported transfer fees on the source chain.

Circle indicates that, in the case where related fees are paid separately, the recipient will receive the full amount of tokens. The actual fees depend on the blockchain combination and the quotes obtained before execution.

Circle Continuously builds the financial infrastructure of Arc

This interoperability guide was released on September 16th, after the Arc mainnet went live. At that time, Circle launched its Layer blockchain, which adopts transaction fees and deterministic finality based on USDC.

As previously reported by crypto.news, Arc was launched with institutional verifiers and supports a variety of stablecoins and tokenized financial products.

Circle subsequently launched Arc Studio, which is a development tool driven by AI and capable of generating smart contracts and applications based on natural language instructions.

The CCTP integration of Arc enables developers to manage assets used for settlement, collateral, and treasury operations across supported networks.

Before deploying tokens to the production environment, Circle recommends checking the management permissions, transfer limits, and contract addresses used on each network.

The company stated that developers must obtain new Iris fee quotes when connecting to more blockchain pathways, while the issuers are still responsible for the tokens they create and the regulatory requirements applicable to their services.