Circle has expanded its Cross-Chain Transfer Protocol (CCTP) infrastructure to support issuer-operated ERC-20 tokens on Arc, allowing developers to move assets between supported blockchains without relying on separate bridges or wrapped copies.
Summary
- Circle has outlined how developers can use CCTP on Arc to move issuer operated ERC-20 tokens between supported blockchains without relying on wrapped copies or separate bridges.
- Developers can either deploy new crosschain tokens through Circle’s native service or connect existing ERC-20 assets using custom token configurations.
- Crosschain transfers use a burn and mint process, with Circle’s Iris service verifying transactions before the corresponding tokens are minted on the destination network.
- Token issuers retain control over administrative permissions, transfer limits and maximum transaction amounts when configuring their assets across supported chains.
- Circle’s Forwarding Service can complete transfers without requiring recipients to pay destination gas fees, provided the applicable service charges are included in the initial quote.
In an October 30 developer update, Circle explained that token issuers can either create new crosschain assets or connect existing ERC-20 tokens to CCTP using the same infrastructure previously developed for USDC transfers.
The company outlined two integration methods, covering newly issued tokens and existing assets controlled by their issuers. Both use a burn-and-mint process in which tokens are destroyed on the originating blockchain and recreated on the destination after the transfer is verified.
Circle said the functionality is intended for applications handling payments, collateral, tokenized real-world assets, and treasury operations across multiple networks.
Circle brings 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 CCTP beyond USDC, introducing support for its euro-denominated EURC stablecoin and cirBTC across selected blockchain routes in September.
The latest developer guidance describes how issuers can use the same messaging and verification infrastructure for their own ERC-20 tokens.
Under the process, a token is burned on the source blockchain, after which Circle’s Iris service verifies the transaction and produces an attestation. The destination network uses the verified message to mint the corresponding amount of tokens.
Developers can complete the destination transaction themselves or use Circle’s Forwarding Service to handle delivery automatically.
For third-party assets, transfers are managed through CrossChainTokenService and an individual token manager, while standard USDC transfers use TokenMessengerV2.
Circle said each supported blockchain maintains its own token contract and balances, although the assets share a common token identity for crosschain transfers.
Developers can create new tokens or connect existing assets
Circle’s framework provides two options depending on whether an issuer is launching a new token or already operates an ERC-20 asset.
For newly created assets, developers can deploy a native CrossChainToken through Arc’s CrossChainTokenService. The deployment creates both the token contract and a dedicated manager responsible for crosschain operations.
A shared token identifier is generated using the deployer’s wallet address and a selected salt value. Developers can reuse those details when deploying the token on another supported blockchain.
Existing token issuers can instead register their assets as custom CCTP tokens without replacing their original ERC-20 contracts.
Circle requires issuers using this approach to configure the token on every blockchain involved in the transfer route, including the necessary permissions and burn-and-mint settings.
The issuer remains responsible for assigning ownership, operator and pauser roles, setting transaction limits, and determining the maximum amount transferable.
Both methods require compatible token decimals across networks and mutual trust between the services handling transfers.
Circle provides a separate configuration option for tokens whose issuers do not control the contracts, although that arrangement does not use the same burn-and-mint mechanism.
Arc testnet supports crosschain deployment and transfers
Circle’s published walkthrough explains how developers can deploy a native token on Arc Testnet before connecting it to another supported EVM blockchain.
The process begins with a reusable deployer address, token details, and Arc Testnet USDC to cover transaction and service fees.
Once the initial contract is deployed, developers obtain its token identifier and request a fee quote from Iris before deploying the corresponding token on the destination blockchain.
Transfer limits must be configured during deployment or subsequently through the token manager. Circle noted that leaving these limits at zero prevents transfers.
After minting the initial supply, developers approve the token manager and submit a crossChainTransfer transaction. The destination contract mints the tokens after receiving the required attestation.
Circle’s Forwarding Service can complete delivery without requiring the recipient to pay destination gas fees, provided the relevant service charge is included in the initial quote.
The company previously introduced prepaid CCTP fees in September, allowing developers to collect supported transfer charges on the originating blockchain.
Circle said the full token amount reaches the recipient when the required fees are paid separately. Actual charges depend on the blockchain pair and the quote obtained before execution.
Circle continues building Arc’s financial infrastructure
The interoperability guidance follows the September 16 Arc mainnet launch, when Circle introduced its Layer 1 blockchain with USDC-based transaction fees and deterministic finality.
As previously reported by crypto.news, Arc launched with institutional validators and support for multiple stablecoins and tokenized financial products.
Circle subsequently introduced Arc Studio, an AI-powered development tool that can generate smart contracts and applications from natural language instructions.
Arc’s CCTP integration gives developers a way to manage assets used for settlement, collateral, and treasury operations across supported networks.
Before deploying tokens into production, Circle recommends reviewing administrative permissions, transfer limits, and the contract addresses used on each network.
The company said developers must obtain fresh Iris fee quotes when connecting additional blockchain routes, while issuers remain responsible for the tokens they create and the regulatory requirements applicable to their services.
