diff --git a/packages/indexer-database/src/entities/evm/SponsoredDepositForBurn.ts b/packages/indexer-database/src/entities/evm/SponsoredDepositForBurn.ts
index b3b673f4..5bb6d693 100644
--- a/packages/indexer-database/src/entities/evm/SponsoredDepositForBurn.ts
+++ b/packages/indexer-database/src/entities/evm/SponsoredDepositForBurn.ts
@@ -7,6 +7,7 @@ import {
   DeleteDateColumn,
   Unique,
 } from "typeorm";
+import { DataSourceType } from "../../model";
 
 @Entity({ schema: "evm" })
 @Unique("UK_sponsoredDepositForBurn_chain_block_tx_log", [
@@ -75,6 +76,9 @@ export class SponsoredDepositForBurn {
   @CreateDateColumn()
   createdAt: Date;
 
+  @Column({ type: "simple-enum", enum: DataSourceType, nullable: true })
+  dataSource?: DataSourceType;
+
   @DeleteDateColumn({ nullable: true })
   deletedAt?: Date;
 }
diff --git a/packages/indexer-database/src/migrations/1767709500000-AddDataSourceToSponsoredDepositForBurn.ts b/packages/indexer-database/src/migrations/1767709500000-AddDataSourceToSponsoredDepositForBurn.ts
new file mode 100644
index 00000000..3e87023b
--- /dev/null
+++ b/packages/indexer-database/src/migrations/1767709500000-AddDataSourceToSponsoredDepositForBurn.ts
@@ -0,0 +1,19 @@
+import { MigrationInterface, QueryRunner } from "typeorm";
+
+export class AddDataSourceToSponsoredDepositForBurn1767709500000
+  implements MigrationInterface
+{
+  name = "AddDataSourceToSponsoredDepositForBurn1767709500000";
+
+  public async up(queryRunner: QueryRunner): Promise<void> {
+    await queryRunner.query(
+      `ALTER TABLE "evm"."sponsored_deposit_for_burn" ADD "dataSource" "evm"."datasource_type_enum" DEFAULT 'polling'`,
+    );
+  }
+
+  public async down(queryRunner: QueryRunner): Promise<void> {
+    await queryRunner.query(
+      `ALTER TABLE "evm"."sponsored_deposit_for_burn" DROP COLUMN "dataSource"`,
+    );
+  }
+}
diff --git a/packages/indexer/src/data-indexing/model/abis.ts b/packages/indexer/src/data-indexing/model/abis.ts
index 1a3afc1c..ea44579f 100644
--- a/packages/indexer/src/data-indexing/model/abis.ts
+++ b/packages/indexer/src/data-indexing/model/abis.ts
@@ -27,3 +27,7 @@ export const SWAP_FLOW_FINALIZED_ABI = [
 export const SWAP_FLOW_INITIALIZED_ABI = [
   "event SwapFlowInitialized(bytes32 indexed quoteNonce,address indexed finalRecipient,address indexed finalToken,uint256 evmAmountIn,uint256 bridgingFeesIncurred,uint256 coreAmountIn,uint64 minAmountToSend,uint64 maxAmountToSend)",
 ];
+
+export const SPONSORED_DEPOSIT_FOR_BURN_ABI = [
+  "event SponsoredDepositForBurn(bytes32 indexed quoteNonce, address indexed originSender, bytes32 indexed finalRecipient, uint256 quoteDeadline, uint256 maxBpsToSponsor, uint256 maxUserSlippageBps, bytes32 finalToken, bytes signature)",
+];
diff --git a/packages/indexer/src/data-indexing/model/eventTypes.ts b/packages/indexer/src/data-indexing/model/eventTypes.ts
index bf8d314c..cc1ac29e 100644
--- a/packages/indexer/src/data-indexing/model/eventTypes.ts
+++ b/packages/indexer/src/data-indexing/model/eventTypes.ts
@@ -61,10 +61,23 @@ export interface SwapFlowInitializedArgs {
   maxAmountToSend: bigint;
 }
 
+export interface SponsoredDepositForBurnArgs {
+  quoteNonce: `0x${string}`;
+  originSender: `0x${string}`;
+  finalRecipient: `0x${string}`;
+  quoteDeadline: bigint;
+  maxBpsToSponsor: bigint;
+  maxUserSlippageBps: bigint;
+  finalToken: `0x${string}`;
+  signature: `0x${string}`;
+  destinationChainId?: number;
+}
+
 export type EventArgs =
   | DepositForBurnArgs
   | MessageSentArgs
   | MessageReceivedArgs
   | MintAndWithdrawArgs
   | SwapFlowFinalizedArgs
-  | SwapFlowInitializedArgs;
+  | SwapFlowInitializedArgs
+  | SponsoredDepositForBurnArgs;
diff --git a/packages/indexer/src/data-indexing/service/config.ts b/packages/indexer/src/data-indexing/service/config.ts
index 015940b4..6d720316 100644
--- a/packages/indexer/src/data-indexing/service/config.ts
+++ b/packages/indexer/src/data-indexing/service/config.ts
@@ -4,6 +4,7 @@ import {
   CCTP_DEPOSIT_FOR_BURN_ABI,
   CCTP_MESSAGE_RECEIVED_ABI,
   CCTP_MESSAGE_SENT_ABI,
+  SPONSORED_DEPOSIT_FOR_BURN_ABI,
   CCTP_MINT_AND_WITHDRAW_ABI,
 } from "../model/abis";
 import {
@@ -19,12 +20,16 @@ import {
 import { IndexerEventPayload } from "./genericEventListening";
 import { IndexerEventHandler } from "./genericIndexing";
 import { Logger } from "winston";
-import { extractRawArgs } from "./preprocessing";
+import {
+  extractRawArgs,
+  preprocessSponsoredDepositForBurn,
+} from "./preprocessing";
 import {
   DepositForBurnArgs,
   EventArgs,
   MessageReceivedArgs,
   MessageSentArgs,
+  SponsoredDepositForBurnArgs,
   MintAndWithdrawArgs,
   SwapFlowFinalizedArgs,
   SwapFlowInitializedArgs,
@@ -39,6 +44,7 @@ import {
   transformDepositForBurnEvent,
   transformMessageReceivedEvent,
   transformMessageSentEvent,
+  transformSponsoredDepositForBurnEvent,
   transformMintAndWithdrawEvent,
   transformSwapFlowFinalizedEvent,
   transformSwapFlowInitializedEvent,
@@ -47,6 +53,7 @@ import {
   storeDepositForBurnEvent,
   storeMessageReceivedEvent,
   storeMessageSentEvent,
+  storeSponsoredDepositForBurnEvent,
   storeMintAndWithdrawEvent,
   storeSwapFlowFinalizedEvent,
   storeSwapFlowInitializedEvent,
@@ -165,6 +172,37 @@ export const CCTP_PROTOCOL: SupportedProtocols<
   },
 };
 
+export const SPONSORED_CCTP_PROTOCOL: SupportedProtocols<
+  Partial<typeof Entity>,
+  BlockchainEventRepository,
+  IndexerEventPayload,
+  EventArgs
+> = {
+  getEventHandlers: (logger: Logger, chainId: number) => {
+    const handlers = CCTP_PROTOCOL.getEventHandlers(logger, chainId);
+    return [
+      ...handlers,
+      {
+        config: {
+          address: getSponsoredCCTPDstPeripheryAddress(
+            chainId,
+          ) as `0x${string}`,
+          abi: SPONSORED_DEPOSIT_FOR_BURN_ABI,
+          eventName: "SponsoredDepositForBurn",
+        },
+        preprocess: (payload: IndexerEventPayload) =>
+          preprocessSponsoredDepositForBurn(payload, logger),
+        filter: async () => true,
+        transform: (
+          args: SponsoredDepositForBurnArgs,
+          payload: IndexerEventPayload,
+        ) => transformSponsoredDepositForBurnEvent(args, payload, logger),
+        store: storeSponsoredDepositForBurnEvent,
+      },
+    ];
+  },
+};
+
 /**
  * Configuration for Sponsored Bridging Protocol.
  */
@@ -217,7 +255,7 @@ export const CHAIN_PROTOCOLS: Record<
     EventArgs
   >[]
 > = {
-  [CHAIN_IDs.ARBITRUM]: [CCTP_PROTOCOL],
+  [CHAIN_IDs.ARBITRUM]: [SPONSORED_CCTP_PROTOCOL],
   [CHAIN_IDs.ARBITRUM_SEPOLIA]: [CCTP_PROTOCOL],
   [CHAIN_IDs.HYPEREVM]: [CCTP_PROTOCOL, SPONSORED_BRIDGING_PROTOCOL],
   [CHAIN_IDs.MAINNET]: [CCTP_PROTOCOL],
diff --git a/packages/indexer/src/data-indexing/service/filtering.ts b/packages/indexer/src/data-indexing/service/filtering.ts
index 998c96dc..2e579b1d 100644
--- a/packages/indexer/src/data-indexing/service/filtering.ts
+++ b/packages/indexer/src/data-indexing/service/filtering.ts
@@ -13,7 +13,7 @@ import {
   CCTP_DEPOSIT_FOR_BURN_ABI,
   CCTP_MESSAGE_RECEIVED_ABI,
 } from "../model/abis";
-import { decodeEventFromReceipt } from "./tranforming";
+import { decodeEventFromReceipt } from "./preprocessing";
 import {
   DepositForBurnArgs,
   MessageReceivedArgs,
diff --git a/packages/indexer/src/data-indexing/service/preprocessing.ts b/packages/indexer/src/data-indexing/service/preprocessing.ts
index b36475d8..32ce7ab3 100644
--- a/packages/indexer/src/data-indexing/service/preprocessing.ts
+++ b/packages/indexer/src/data-indexing/service/preprocessing.ts
@@ -1,4 +1,41 @@
 import { IndexerEventPayload } from "./genericEventListening";
+import {
+  Abi,
+  parseAbi,
+  parseEventLogs,
+  TransactionReceipt,
+  decodeEventLog,
+} from "viem";
+import {
+  SPONSORED_DEPOSIT_FOR_BURN_ABI,
+  CCTP_DEPOSIT_FOR_BURN_ABI,
+} from "../model/abis";
+import { DEPOSIT_FOR_BURN_EVENT_NAME } from "./constants";
+import {
+  DepositForBurnArgs,
+  SponsoredDepositForBurnArgs,
+} from "../model/eventTypes";
+import { getCctpDestinationChainFromDomain } from "../adapter/cctp-v2/service";
+import { Logger } from "winston";
+
+/**
+ * extracts and decodes a specific event from a transaction receipt's logs.
+ * @param receipt The transaction receipt.
+ * @param abi The Abi containing the event definition.
+ * @returns The decoded event arguments, or undefined if not found.
+ */
+export const decodeEventFromReceipt = <T>(
+  receipt: TransactionReceipt,
+  abi: Abi,
+  eventName: string,
+): T | undefined => {
+  const logs = parseEventLogs({
+    abi,
+    logs: receipt.logs,
+  });
+  const log = logs.find((log) => log.eventName === eventName);
+  return (log?.args as T) ?? undefined;
+};
 
 export const extractRawArgs = <TEvent>(
   payload: IndexerEventPayload,
@@ -13,3 +50,31 @@ export const extractRawArgs = <TEvent>(
 
   return rawArgs as TEvent;
 };
+
+export const preprocessSponsoredDepositForBurn = (
+  payload: IndexerEventPayload,
+  logger: Logger,
+): SponsoredDepositForBurnArgs => {
+  const args = extractRawArgs<SponsoredDepositForBurnArgs>(payload);
+
+  if (payload.transactionReceipt) {
+    const depositArgs = decodeEventFromReceipt<DepositForBurnArgs>(
+      payload.transactionReceipt,
+      parseAbi(CCTP_DEPOSIT_FOR_BURN_ABI),
+      DEPOSIT_FOR_BURN_EVENT_NAME,
+    );
+    if (depositArgs) {
+      args.destinationChainId = getCctpDestinationChainFromDomain(
+        depositArgs.destinationDomain,
+      );
+    } else {
+      const message = `Failed to decode DepositForBurn event from transaction receipt to decode destination chain id for SponsoredDepositForBurnEvent.`;
+      logger.error({
+        message,
+        payload,
+      });
+      throw new Error(message);
+    }
+  }
+  return args;
+};
diff --git a/packages/indexer/src/data-indexing/service/storing.ts b/packages/indexer/src/data-indexing/service/storing.ts
index 9deed7fb..446f6b8f 100644
--- a/packages/indexer/src/data-indexing/service/storing.ts
+++ b/packages/indexer/src/data-indexing/service/storing.ts
@@ -9,6 +9,28 @@ const PK_CHAIN_BLOCK_TX_LOG = [
   "logIndex",
 ];
 
+/**
+ * Stores a DepositForBurn event in the database.
+ *
+ * @param event The DepositForBurn entity to store.
+ * @param repository The BlockchainEventRepository instance.
+ * @returns A promise that resolves to the result of the save operation.
+ */
+export const storeSponsoredDepositForBurnEvent: Storer<
+  Partial<entities.SponsoredDepositForBurn>,
+  dbUtils.BlockchainEventRepository
+> = async (
+  event: Partial<entities.SponsoredDepositForBurn>,
+  repository: dbUtils.BlockchainEventRepository,
+) => {
+  return repository.saveAndHandleFinalisationBatch<entities.SponsoredDepositForBurn>(
+    entities.SponsoredDepositForBurn,
+    [{ ...event, dataSource: DataSourceType.WEB_SOCKET } as any],
+    PK_CHAIN_BLOCK_TX_LOG as (keyof entities.SponsoredDepositForBurn)[],
+    [],
+  );
+};
+
 /**
  * Stores a DepositForBurn event in the database.
  *
diff --git a/packages/indexer/src/data-indexing/service/tranforming.ts b/packages/indexer/src/data-indexing/service/tranforming.ts
index 1a20e490..2e36040e 100644
--- a/packages/indexer/src/data-indexing/service/tranforming.ts
+++ b/packages/indexer/src/data-indexing/service/tranforming.ts
@@ -3,7 +3,7 @@ import * as across from "@across-protocol/sdk";
 import { IndexerEventPayload } from "./genericEventListening";
 import {
   getCctpDestinationChainFromDomain,
-  decodeMessage, // New import
+  decodeMessage,
 } from "../adapter/cctp-v2/service";
 import { formatFromAddressToChainFormat, safeJsonStringify } from "../../utils";
 import { getFinalisedBlockBufferDistance } from "./constants";
@@ -11,18 +11,13 @@ import {
   DepositForBurnArgs,
   MessageReceivedArgs,
   MessageSentArgs,
+  SponsoredDepositForBurnArgs,
   MintAndWithdrawArgs,
   SwapFlowFinalizedArgs,
   SwapFlowInitializedArgs,
 } from "../model/eventTypes";
 import { Logger } from "winston";
-import { arrayify } from "ethers/lib/utils"; // New import
-import {
-  TransactionReceipt,
-  parseEventLogs,
-  ParseEventLogsReturnType,
-  Abi,
-} from "viem";
+import { arrayify } from "ethers/lib/utils";
 
 /**
  * A generic transformer for addresses.
@@ -128,6 +123,43 @@ export const transformDepositForBurnEvent = (
   };
 };
 
+export const transformSponsoredDepositForBurnEvent = (
+  preprocessed: SponsoredDepositForBurnArgs,
+  payload: IndexerEventPayload,
+  logger: Logger,
+): Partial<entities.SponsoredDepositForBurn> => {
+  const base = baseTransformer(payload, logger);
+
+  const destinationChainId = preprocessed.destinationChainId;
+  if (!destinationChainId) {
+    const message = `Failed to decode DepositForBurn event from transaction receipt to decode destination chain id for SponsoredDepositForBurnEvent.`;
+    logger.error({
+      message,
+      payload,
+    });
+    throw new Error(message);
+  }
+  const finalRecipient = transformAddress(
+    preprocessed.finalRecipient,
+    destinationChainId,
+  );
+  const finalToken = transformAddress(
+    preprocessed.finalToken,
+    destinationChainId,
+  );
+
+  return {
+    ...base,
+    quoteNonce: preprocessed.quoteNonce,
+    originSender: preprocessed.originSender.toLowerCase(),
+    finalRecipient: finalRecipient.toLowerCase(),
+    quoteDeadline: new Date(Number(preprocessed.quoteDeadline) * 1000),
+    maxBpsToSponsor: preprocessed.maxBpsToSponsor.toString(),
+    maxUserSlippageBps: preprocessed.maxUserSlippageBps.toString(),
+    finalToken: finalToken.toLowerCase(),
+    signature: preprocessed.signature,
+  };
+};
 export const transformMessageSentEvent = (
   preprocessed: MessageSentArgs,
   payload: IndexerEventPayload,
@@ -165,25 +197,6 @@ export const transformMessageSentEvent = (
   };
 };
 
-/**
- * extracts and decodes a specific event from a transaction receipt's logs.
- * @param receipt The transaction receipt.
- * @param abi The Abi containing the event definition.
- * @returns The decoded event arguments, or undefined if not found.
- */
-export const decodeEventFromReceipt = <T>(
-  receipt: TransactionReceipt,
-  abi: Abi,
-  eventName: string,
-): T | undefined => {
-  const logs = parseEventLogs({
-    abi,
-    logs: receipt.logs,
-  });
-  const log = logs.find((log) => log.eventName === eventName);
-  return (log?.args as T) ?? undefined;
-};
-
 /**
  * Transforms a raw `MessageReceived` event payload into a partial `MessageReceived` entity.
  * The 'finalised' property is set by the `baseTransformer` based on the event's block number
diff --git a/packages/indexer/src/data-indexing/tests/Indexers.integration.test.ts b/packages/indexer/src/data-indexing/tests/Indexers.integration.test.ts
index 82a3e891..677acc5a 100644
--- a/packages/indexer/src/data-indexing/tests/Indexers.integration.test.ts
+++ b/packages/indexer/src/data-indexing/tests/Indexers.integration.test.ts
@@ -5,14 +5,17 @@ import { startChainIndexing } from "../service/indexing";
 import { MockWebSocketRPCServer } from "../../tests/testProvider";
 import { utils as dbUtils } from "@repo/indexer-database";
 import * as contractUtils from "../../utils/contractUtils";
-import { entities, utils, DataSourceType } from "@repo/indexer-database";
-import { MESSAGE_TRANSMITTER_ADDRESS_MAINNET } from "../service/constants";
+import { entities, DataSourceType } from "@repo/indexer-database";
 import sinon from "sinon";
 import { Logger } from "winston";
 import { CHAIN_IDs } from "@across-protocol/constants";
 import { createPublicClient, http, PublicClient } from "viem";
 import { arbitrum, arbitrumSepolia, hyperEvm, mainnet } from "viem/chains";
-import { CCTP_PROTOCOL, SPONSORED_BRIDGING_PROTOCOL } from "../service/config";
+import {
+  CCTP_PROTOCOL,
+  SPONSORED_BRIDGING_PROTOCOL,
+  SPONSORED_CCTP_PROTOCOL,
+} from "../service/config";
 
 // Setup generic client for fetching data
 const getTestPublicClient = (chainId: number): PublicClient => {
@@ -509,6 +512,76 @@ describe("Websocket Subscription", () => {
       hookData: "0x",
     });
   }).timeout(20000);
+  it("should ingest sponsored CCTP events from Arbitrum tx 0xef55...78a0", async () => {
+    // Tx: https://arbiscan.io/tx/0xef55d3110094488b943525fd6609e7918328009168e661658b5fb858434b78a0
+    const txHash =
+      "0xef55d3110094488b943525fd6609e7918328009168e661658b5fb858434b78a0";
+
+    const client = getTestPublicClient(CHAIN_IDs.ARBITRUM);
+
+    // Stub contract Utils for finding the sponsored event from the periphery address
+    // The previous test suite (CCTPIndexerDataHandler) used:
+    // SponsoredCCTPSrcPeriphery: 0xAA4958EFa0Cf6DdD87e354a90785f1D7291a82c7
+    sinon
+      .stub(contractUtils, "getSponsoredCCTPSrcPeripheryAddress")
+      .returns("0xAA4958EFa0Cf6DdD87e354a90785f1D7291a82c7");
+
+    const { block, receipt } = await fetchAndMockTransaction(
+      server,
+      client,
+      txHash,
+    );
+
+    // Start the Indexer
+    startChainIndexing({
+      repo: blockchainRepository,
+      rpcUrl: rpcUrl,
+      logger,
+      sigterm: abortController.signal,
+      chainId: CHAIN_IDs.ARBITRUM,
+      protocols: [SPONSORED_CCTP_PROTOCOL],
+    });
+
+    await server.waitForSubscription(4);
+
+    receipt.logs.forEach((log) => server.pushEvent(log));
+
+    // Wait for insertion
+    await new Promise((resolve) => setTimeout(resolve, 1000));
+
+    // Verify DepositForBurn Persistence
+    const depositRepo = dataSource.getRepository(entities.DepositForBurn);
+    const savedEvent = await depositRepo.findOne({
+      where: { transactionHash: txHash },
+    });
+    expect(savedEvent).to.exist;
+    expect(savedEvent!.transactionHash).to.equal(txHash);
+
+    // Verify SponsoredDepositForBurn Persistence
+    const sponsoredRepo = dataSource.getRepository(
+      entities.SponsoredDepositForBurn,
+    );
+    const savedSponsoredEvent = await sponsoredRepo.findOne({
+      where: { transactionHash: txHash },
+    });
+    expect(savedSponsoredEvent).to.exist;
+    expect(savedSponsoredEvent!).to.deep.include({
+      chainId: CHAIN_IDs.ARBITRUM,
+      blockNumber: Number(block.number),
+      transactionHash: txHash,
+      quoteNonce:
+        "0x333d757477a9ebed33ed12e6320a8414d034cd86ca2acd292d9b687a99bdb866",
+      originSender: "0x9a8f92a830a5cb89a3816e3d267cb7791c16b04d",
+      finalRecipient: "0x9a8f92a830a5cb89a3816e3d267cb7791c16b04d",
+      quoteDeadline: new Date(1765996920 * 1000),
+      maxBpsToSponsor: 0,
+      maxUserSlippageBps: 50,
+      finalToken: "0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48",
+      signature:
+        "0x1ed01ce81157c25664616c112142037217f5b22318f451eb7f6eb07d2784810a00c1d0f648a6687fcd3dccfe7c37660c7e378dbc0c2a49a917d6b016cdb8f8571c",
+      dataSource: DataSourceType.WEB_SOCKET,
+    });
+  }).timeout(20000);
   it("should ingest the MintAndWithdraw event from Arbitrum tx 0x3b3d...e813", async () => {
     // Real Transaction Data
     const txHash =