#CircleIPO

The advantages of CCTP, reflecting the challenges it addresses, are as follows:

Capital efficiency – CCTP enables nearly unlimited bridging of USDC across chains without relying on liquidity pools or wrapped tokens that require asset locking and bridge security.

Zero fees – Users can transfer USDC across chains without incurring any additional costs beyond gas fees, thanks to CCTP eliminating the fees typically paid to LPs and third-party bridges.

Interoperable assets – CCTP allows users to hold native USDC that is interchangeable with assets on other chains, thus avoiding the complexities of wrapped or synthetic versions.

No slippage – CCTP transactions are exempt from slippage, a common issue in liquidity pool transfers, as there is no exchange of assets between LPs and users.

Minimal trust assumptions – CCTP relies on Circle, the issuer of stablecoins. Users already trust Circle by using USDC, so extending that trust to cross-chain transactions managed by the issuer is a relatively small additional assumption.