Odaily Planet Daily reports that Circle has announced that its cross-chain transfer protocol, CCTP, now supports prepaid transaction fees for fast transfers. Previously, protocol fees were deducted directly from the USDC transfer amount on the destination chain; with this update, developers can now quote and collect fees in advance using either the source chain’s native gas token or USDC before executing the transfer, simplifying fee handling for cross-chain transfers and ensuring users receive the expected amount of USDC.
The prepaid fee mechanism is designed to improve fee predictability in cross-chain applications. Users no longer face reduced final receipt amounts due to additional fees on the destination chain. Meanwhile, the CCTP Quote API uniformly calculates fees across all supported chains and consolidates Fast Transfer and Forwarding fees into a single quote, eliminating the need for developers to build separate systems to calculate multiple protocol fees. Additionally, fees can be paid directly using the native token of the source chain, without reducing or affecting the actual USDC balance being transferred.