Circle's Cross-Chain Transfer Protocol (CCTP) now supports a prepaid fee feature for fast transfers

Odaily News: Circle announced that its Cross-Chain Transfer Protocol (CCTP) now supports a prepaid fee feature for fast transfers. Previously, protocol fees were deducted directly from the USDC transfer amount on the destination chain. With this update, developers can pre-quote and collect fees via native gas tokens on the source chain or USDC before the transfer is executed, simplifying fee handling for cross-chain transfers and ensuring users receive the expected amount of USDC.

According to Circle, the prepaid fee mechanism primarily improves fee predictability in cross-chain applications. Users no longer face reduced actual settlement amounts caused by additional deductions on the destination chain. Meanwhile, the CCTP Quote API can uniformly calculate fees across different supported chains and consolidate Fast Transfer and Forwarding fees into a single quote, eliminating the need for developers to build separate systems to calculate multiple protocol fees. Additionally, fees can be paid directly using source chain native tokens without reducing or impacting the actual USDC balance being transferred.