Circle has opened access to its Cross-Chain Transfer Protocol (CCTP) infrastructure for third-party ERC-20 tokens on the Arc network. This update paves the way for developers to transfer assets across blockchains without using third-party cross-chain bridges or relying on wrapped tokens. Intermediary bridges and wrapped tokens have historically been frequent targets of hacker exploits across various networks.
Circle’s CCTP infrastructure previously operated solely on its own internal assets and did not support third-party tokens.
Burn-and-Mint Mechanism Eliminates Third-Party Bridges
The burn-and-mint mechanism in this system is identical to the USDC transfer process. When an asset is transferred, the system burns the token on the source blockchain. Circle’s Iris service then verifies the transaction to generate an official attestation. Once the attestation is issued, a contract on the destination blockchain natively mints the original token, eliminating the need to lock synthetic assets in intermediary bridges.
Developers can determine how the mint claim is executed on the destination chain. The claiming process can be executed directly by developers or delegated to Circle’s Forwarding Service to automate routing until the token reaches the destination wallet.
Two Integration Options and Full Issuer Control
Circle has outlined two technical paths for token issuers looking to connect to the Arc network. The first option is deploying a new CrossChainToken contract via Arc CrossChainTokenService using a shared identifier based on a combination of salt and the issuer’s wallet. The second option enables the registration of already active ERC-20 contracts without modifying their original contract code.
Asset governance control remains with the token issuer rather than transferring to Circle. Issuers retain full authority over minting permissions, pauser roles to halt the system, contract ownership, and setting maximum transfer limits for each transaction.
Liquidity Focus from RWAs to Payments
The new feature is designed to bolster cross-chain liquidity across several key sectors. Developers can leverage it for payment systems, lending collateral, real-world asset (RWA) tokenization, and multi-network treasury cash management.
Prior to expanding support to third-party tokens on the Arc network, CCTP was initially exclusive to USDC. Circle only began opening the protocol to the euro stablecoin EURC and cirBTC in September 2026. For token issuers and project developers, this expansion offers a cross-chain transfer alternative with security rules set directly by the protocol issuer without giving up contract ownership.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
