Circle will gradually phase out CCTP V1 and reduce cross-chain limits starting from October 31

Circle announced that it will gradually phase out the old cross-chain transfer protocol CCTP V1 and will begin reducing the cross-chain destruction limit for the old USDC starting October 31. This process will last for one month, during which transfer performance will gradually decline until the V1 contract is completely suspended on December 1. At that time, any integrations still pointing to V1 will no longer be able to transfer USDC across chains.

This migration aims to encourage developers to transition to CCTP V2. CCTP V2 offers standard transfer and fast transfer modes and introduces programmable hooks functionality, allowing automated actions to be triggered once USDC reaches the target chain. Currently, CCTP V2 supports 27 blockchains, and Circle states that new integrations should be built directly on V2.

Regarding fund security, Circle emphasizes that pending redemption requests will still be available during the phase-out period. The company will maintain a minting limit above the total amount of pending proofs to ensure that all pending redemptions can be processed before the V1 contract is completely suspended. This transition plan aims to achieve a transparent, predictable, and minimally disruptive migration.