Circle to start cutting USDC transfer limits on legacy CCTP V1 on Oct. 31
In brief
- Circle plans to lower burn limits on legacy CCTP V1 starting Oct. 31.
- CCTP V1 contracts are scheduled to pause on Dec. 1, 2026.
- Pending redemptions will stay available during the phase-out, Circle says.
- Apps must update contracts, APIs and calls to move to the newer CCTP.
How the wind-down works
CCTP moves USDC by burning it on a source blockchain and minting it on the destination chain. A burn limit caps how much USDC can enter that process (and it's the number Circle plans to start lowering). An attestation is Circle's signed approval for burned USDC to be minted on the other side.
Circle's published schedule calls for lower burn limits from Oct. 31, followed by a gradual decline in performance. Its migration guide describes progressively tighter message limits until no new burns can be started, with transfer volume meant to reach zero before the contracts are fully paused on Dec. 1, 2026.
Once that pause hits, integrations still pointing at V1 won't transfer USDC between blockchains at all.
Pending redemptions get separate treatment
Circle said pending redemptions will remain available during the phase-out. It also said it'll keep minting allowances above the total of pending attestations, so those redemptions can be processed before the full pause. Both steps (halting new burns and clearing pending redemptions) sit before Dec. 1 in Circle's plan.
What's missing? CryptoSlate noted that no intermediate numerical limits, per-chain timetable, adoption data or post-pause redemption promise was shown.
What the move to V2 requires
Circle announced the move away from V1 on Nov. 14, 2025, and published the October-to-December timetable on Aug. 27, 2026. The newer system, now branded simply as CCTP, isn't compatible with V1 integrations, according to Circle.
That means real work for developers. Applications have to update the contracts and APIs they use, along with the calls made to those contracts. The guide lists new addresses and interfaces, including TokenMessengerV2 and MessageTransmitterV2. In TokenMessengerV2, the depositForBurn function adds parameters for the permitted destination caller, maximum fee and minimum finality threshold. The attestation workflow changes too.
As of Oct. 29, both the Oct. 31 start and the Dec. 1 pause were still ahead.
Frequently asked questions
What happens to apps still using CCTP V1 after Dec. 1?
Circle said that once the V1 contracts are paused, integrations still pointing to CCTP V1 would stop transferring USDC between blockchains. The full pause is scheduled for Dec. 1, 2026.
Will pending USDC redemptions on CCTP V1 still be processed?
Circle said pending redemptions would stay available during the phase-out. It said it would keep minting allowances above the total of pending attestations so redemptions could be processed before the full pause. CryptoSlate noted no post-pause redemption promise was shown.
How does a burn limit work in Circle's CCTP?
CCTP moves USDC by burning it on a source blockchain and minting it on the destination blockchain. A burn limit caps how much USDC can enter that process. Circle's attestation is its signed approval for burned USDC to be minted on the destination chain.
What do developers need to change to migrate to the newer CCTP?
Applications have to update the contracts and APIs they use, along with the calls made to those contracts. The migration guide lists new interfaces including TokenMessengerV2 and MessageTransmitterV2, and the attestation workflow also changes.
