Circle has just rocked the crypto world with the launch of Cross-Chain Transfer Protocol version 2 (CCTP V2) on the Arbitrum network.
Not just an upgrade, this launch redefines stablecoin transfers between networks that have often been slow and inefficient. With a “burn-and-mint” approach, transferred USDC will be burned on the origin network and minted again on the destination network, without having to go through a third-party bridge that is prone to security holes.
CCTP V2 is now available on @arbitrum!
CCTP V2 on Arbitrum provides:
- ⚡Fast Transfer: cross-chain @USDC settlement in seconds
- Hooks: smart contract integrations for post-transfer actions
- Capital Efficient: 1:1 burn-and-mint, no liquidity pools or fillers
- Secured by Circle: …
— Circle (@circle) May 2, 2025
Circle Adds Powerful Automation and Speed With CCTP V2
However, what really stands out are the two new features brought by CCTP V2. First, Fast Transfer—as the name suggests, this feature is indeed fast. The process that previously could take tens of minutes is now completed in seconds. Second, the Hooks feature, which allows developers to set automatic actions after a transfer occurs.
For example, directly exchanging assets, managing treasury balances, or activating smart contracts without having to wait for human hands to work. Just imagine if sending USDC from Ethereum to Arbitrum could be immediately greeted with automatic staking. More practical and efficient, right?
From Ripple’s Rejection to Middle East Expansion
On the other hand, Circle’s move in Arbitrum also coincides with a series of other important announcements. On April 28, they introduced the Circle Payments Network (CPN), a global payment network based on stablecoins such as USDC and EURC. The goal is quite ambitious: to replace traditional payment systems that depend on bank working hours or card system schedules such as Visa.
Through CPN, cross-border transactions can run 24/7, with much lower costs. It is not surprising that more and more institutions are looking at this solution as a way out of a system that feels slow and expensive.
Furthermore, Circle also rejected Ripple’s acquisition offer worth $4 to $5 billion. A figure that, for them, is not comparable to USDC’s market position which already has a capitalization of more than $60 billion. Instead of merging with Ripple’s RLUSD, Circle is instead moving forward to the stock exchange through an IPO plan on the New York Stock Exchange with the stock code “CRCL.”
Their IPO filing data states that last year’s revenue was $1.68 billion, up from $1.45 billion. However, net income fell to $157 million from $271.5 million. Yes, the stablecoin business still has to face ups and downs in margins.
Besides that, on April 24, Circle partnered with digital asset custodian Copper to integrate ClearLoop into its settlement system. With this, financial institutions can trade using USDC while keeping their assets in safe custody.
So, there is no need to bother moving funds in and out of wallets just to complete a transaction. It’s like having your own private toll road for digital asset trading—smooth, fast, and uninterrupted.
Interestingly, CNF also reported that Circle has now received in-principle approval from the Abu Dhabi Financial Services Regulatory Authority (FSRA) to provide digital financial services in the United Arab Emirates. This move certainly opens the door wider to the Middle East market, at a time when many crypto companies are still struggling to navigate changing regulations.