Circle has expanded its Cross-Chain Transfer Protocol (CCTP) infrastructure to support ERC-20 tokens issued on Arc, enabling developers to transfer assets between supported blockchains without relying on separate bridges or wrapped token copies.
Circle outlines how developers can use CCTP on Arc to transfer issuer-operated ERC-20 tokens between supported blockchains without relying on wrapped tokens or separate bridges.
- Developers can deploy new cross-chain tokens using Circle’s native services or integrate existing ERC-20 assets with custom token configurations.
- Cross-chain transfers use a burn-and-mint process, and Circle's Iris service verifies transactions before minting the corresponding token on the target network.
- When configuring cross-chain assets, the token issuer retains control over management permissions, transfer limits, and maximum transaction amounts.
- If the associated service fee is included in the initial quote, Circle’s Forwarding Service can complete the transfer without requiring the recipient to pay the target chain’s gas fee.
In a developer update on October 30, Circle explained that token issuers can use the same infrastructure previously developed for USDC transfers to create new cross-chain assets or connect existing ERC-20 tokens to CCTP.
The company offers two integration methods, covering newly issued tokens and existing assets controlled by the issuer. Both methods utilize a burn-and-mint process: tokens are first burned on the source chain and then re-minted on the target chain once the transfer has been verified.
Circle states that this feature is designed for applications handling payments, collateral, tokenized real-world assets, and treasury operations across multiple networks.
Circle extends CCTP interoperability to third-party tokens
Until recently, CCTP was primarily associated with transferring Circle-issued assets between supported blockchains, particularly USDC, which originally introduced the protocol’s burn-and-mint model.
Circle has since expanded its CCTP support beyond USDC, adding support for its euro-denominated stablecoin EURC and cirBTC on select blockchain pathways in September.
The latest developer guide explains how issuers can use the same messaging and verification infrastructure to manage their own ERC-20 tokens.
Under this process, tokens are first burned on the source blockchain, after which Circle’s Iris service verifies the transaction and generates a proof. The target network then mints the corresponding amount of tokens using the verified message.
Developers can complete the target chain transaction themselves or use Circle’s Forwarding Service to automatically handle delivery.
For third-party assets, transfers are handled through CrossChainTokenService and a separate token manager; standard USDC transfers use TokenMessengerV2.
Circle states that each supported blockchain maintains its own token contract and balances, but these assets share a unified token identity during cross-chain transfers.
Developers can create new tokens or integrate existing assets.
Circle's framework offers two options depending on whether the issuer is launching a new token or already operates an ERC-20 asset.
For newly created assets, developers can deploy a native CrossChainToken using Arc’s CrossChainTokenService. This deployment simultaneously creates the token contract and a dedicated manager responsible for cross-chain operations.
The system generates a shared token identifier using the deployer’s wallet address and the selected salt value. 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 replacing their existing ERC-20 contracts.
Circle requires issuers using this method to configure tokens on every blockchain involved in the transfer path, including the necessary permissions and burn and mint settings.
The issuer remains responsible for assigning ownership, operator, and suspender roles, setting transaction limits, and determining the maximum transferable amount.
Both methods require compatible decimal places for tokens across networks and mutual trust between the services responsible for transfers.
Circle also provides separate configuration options for tokens where the issuer does not control the contract, but this arrangement does not use the same burn-and-mint mechanism.
Arc testnet supports cross-chain deployment and transfers.
Circle's operational guide states that developers can first deploy native tokens on the 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 used to pay for transaction and service fees.
After the initial contract deployment is completed, developers will receive a token identifier and must request a fee quote from Iris before deploying the corresponding token on the target blockchain.
Transfer limits must be configured through the token manager at deployment or afterward. Circle notes that if these limits remain at zero, transfers will not be possible.
After minting the initial supply, developers must approve the token manager and submit a crossChainTransfer transaction. The target contract mints the tokens upon receiving the required proof.
If the associated service fees are included in the initial quote, Circle’s Forwarding Service can complete delivery without requiring the recipient to pay gas fees on the destination chain.
The company previously introduced a prepaid CCTP fee mechanism in September, allowing developers to collect supported transfer fees on the source chain.
Circle states that, when applicable fees are paid separately, the recipient will receive the full token amount. Actual fees depend on the blockchain combination and the quote obtained prior to execution.
Circle is continuously building the financial infrastructure for Arc.
This interoperability guide was released after the Arc mainnet went live on September 16, when Circle launched its Layer 1 blockchain featuring USDC-based transaction fees and finality.
According to previous reports from crypto.news, Arc launched with institutional validators and supports multiple stablecoins and tokenized financial products.
Circle subsequently launched Arc Studio, an AI-powered development tool that generates smart contracts and applications from natural language instructions.
Arc's CCTP integration enables developers to manage assets for settlement, staking, and treasury operations across supported networks.
Before deploying tokens to production, Circle recommends reviewing the administrative permissions, transfer limits, and contract addresses used on each network.
The company stated that developers must obtain new Iris fee quotes when connecting additional blockchain pathways, while issuers remain responsible for the tokens they create and the regulatory requirements applicable to their services.