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CCTP with Wormhole Overview＃

The integration of Circle's Cross-Chain Transfer Protocol (CCTP) with the Wormhole messaging protocol creates a robust system for securely and efficiently transferring native USDC across different blockchain networks while enabling more complex multichain interactions. This combination streamlines the movement of stablecoins, reduces risk, and unlocks new possibilities for decentralized applications.

Key Features＃

  • Secure native USDC transfers: At its core, CCTP provides a "burn-and-mint" mechanism for transferring native USDC. This eliminates the need for wrapped assets and the associated risks of intermediary bridges.
  • Atomic execution: By combining CCTP and Wormhole, the transfer of USDC and the execution of accompanying instructions on the destination chain can occur as a single atomic transaction.
  • Automated relaying: Eliminates the need for users to redeem USDC transfers themselves.
  • Enhanced composability: Developers can build more sophisticated cross-chain applications by sending additional data alongside the transfer.
  • Gas drop off: Enables users to convert a portion of USDC into the destination chain's gas token upon a successful transfer.
  • Gas payment: Covering destination gas in automated vs. manual transfers.
    • Automated: Users often don't need destination gas tokens upfront, relayers cover these gas costs, reimbursed via gas drop-off or initial fees.
    • Manual: Users pay destination gas directly, the protocol may offer post-claim USDC-to-gas conversion.

How It Works＃

This section outlines the end-to-end flow for transferring native USDC across chains using CCTP while optionally triggering an action on the destination chain. Circle and Wormhole coordinate each step to ensure a secure, verifiable transfer and execution process.

  1. Alice initiates a transfer on Ethereum: She submits a request to the Circle Bridge to send 100 USDC to Avalanche. If desired, she could include optional payload data.

  2. Tokens are taken into custody and burned: The Circle Bridge takes custody of Alice's USDC and initiates a burn using Circle's CCTP, triggering an off-chain attestation process.

  3. A Wormhole message is published: The transfer metadata is emitted as a Wormhole message. Guardians validate and sign it to produce a Verifiable Action Approval (VAA).

  4. A relayer automatically processes the messages: Once the VAA and Circle attestation are available, a relayer submits them to the Circle Bridge on Avalanche.

  5. Tokens are minted: The Circle Bridge verifies both proofs and mints 100 USDC to Alice using Circle's CCTP. If a payload is included, it can be executed atomically.

sequenceDiagram
    participant User as Alice
    participant SourceChain as Circle Bridge<br>on Ethereum
    participant Circle
    participant Guardians as Wormhole Guardians
    participant Relayer
    participant DestinationChain as Circle Bridge<br>on Avalanche

    User->>SourceChain: Submit transfer <br>(100 USDC to Avalanche)
    SourceChain->>Circle: Initiate a burn
    Circle->>Circle: Burn USDC and provide attestation
    SourceChain->>Guardians: Emit Wormhole message (transfer metadata)
    Guardians->>Guardians: Sign message and produce VAA
    Relayer->>Guardians: Fetch signed VAA
    Relayer->>Circle: Fetch Circle burn attestation
    Relayer->>DestinationChain: Submit VAA and<br> attestation
    DestinationChain->>Circle: Verify Circle attestation
    Circle->>User: Mint USDC to Alice

Note

For a cross-chain transfer to be successful, both the source and destination chains must be among those supported by Circle's CCTP.

Use Cases＃

Integrating Wormhole's messaging with CCTP enables the secure transfer of native USDC across blockchains, unlocking key cross-chain use cases, which include:

  • USDC Payments Across Chains

    • CCTP: Transfer native USDC using Circle’s burn-and-mint protocol.
    • Wormhole TypeScript SDK: Automate attestation delivery and gas handling.
    • Connect: Embed multichain USDC transfers directly in your app.

  • USDC-Powered Multichain Settlement

    • Settlement: Use the Liquidity Layer to settle intents with native USDC.
    • Wormhole TypeScript SDK: Initiate transfers, discover routes, and execute swaps seamlessly.

Next Steps＃

Now that you're familiar with CCTP, here is a list of resources for more hands-on practice:

  • Get started with CCTP Bridge: Perform a multichain USDC transfer from Avalanche to Sepolia using Wormhole's TypeScript SDK and Circle's CCTP.
  • Complete USDC Transfer Flow: Execute a USDC cross-chain transfer using Wormhole SDK and Circle's CCTP, covering manual, automatic, and partial transfer recovery.
  • Checkout Circle's CCTP Docs: Learn more about Circle's cross-chain transfer protocol in their documentation.