Circle Extends CCTP Interoperability to Third-Party ERC-20 Assets

The integration allows token issuers to either deploy new cross-chain assets through Circle’s native services or connect existing ERC-20 tokens by configuring them within the CCTP framework. By utilizing Circle’s Iris verification service, the protocol destroys tokens on the source blockchain and recreates them on the destination, maintaining a unified token identity while allowing issuers to retain full control over administrative permissions and transfer limits.

For existing assets, issuers must register their tokens as custom CCTP entities, ensuring compatibility across all networks in the transfer route. The process requires careful configuration of ownership, operator roles, and transaction caps to prevent operational errors. Circle also provides a Forwarding Service, which enables the completion of transfers without requiring recipients to pay destination gas fees, provided the service charges are settled upfront during the initial quote.

This infrastructure supports a variety of use cases, including collateral management, treasury operations, and the movement of tokenized real-world assets. Developers can test these workflows on the Arc Testnet using a reusable deployer address and Arc USDC to cover transaction fees. Following the September mainnet launch of Arc, this expansion aims to provide institutional-grade interoperability, allowing developers to manage settlement and liquidity across multiple EVM-compatible networks with greater technical autonomy.