Circle implements prepaid fees for CCTP Fast Transfer

Circle has introduced upfront fee payments for its Cross-Chain Transfer Protocol (CCTP) Fast Transfer service. This update allows developers to quote and collect cross-chain USDC fees on the source network, ensuring the recipient receives the exact amount intended without deductions.

Under the new model, fees can be paid using USDC or the native gas token of the source blockchain. This requires an EVM-compatible source chain, though transfers can still conclude on supported non-EVM networks. The process utilizes a Quote API to provide signed, time-limited quotes that combine protocol fees into a single transaction.

Previously, protocol fees were often deducted from the USDC minted on the destination network, meaning recipients received less than the original amount sent. The new prepaid system separates the transfer amount from the fee. Once a transaction is submitted, a CCTP smart contract verifies the quote, collects payment, and facilitates the USDC burn on the source chain before minting the full amount on the destination chain.