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Crypto DeFi

Circle CCTP Adds Prepaid Fees for Fast Transfers

Circle’s Cross-Chain Transfer Protocol (CCTP) now supports prepaid fees for fast transfers, allowing developers to quote and charge fees on the source chain using native gas tokens or USDC before execution. Previously, fees were deducted from USDC amounts on the destination chain. The feature is available for all EVM chains supporting CCTP, but not for transfers originating from Solana, though transfers to Solana remain supported.

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AI take

This change shifts fee mechanics upstream, giving developers more control over the cost structure of cross-chain transfers. By letting fees be paid in native gas or USDC on the source chain, it reduces friction for users who might otherwise need destination-chain funds. The exclusion of Solana-originating transfers is notable, as it creates an asymmetry that could affect liquidity routing. Whether this operational tweak meaningfully boosts CCTP adoption or just simplifies developer integration is the key thing to watch, especially as fee models become a competitive lever in the bridging space.

Generated by AI for reference only.

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