Chainlink Launches Cross-Chain Interoperability Protocol On Ethereum, Optimism, Polygon, Avalanche Blockchains

Zinger Key Points
  • CCIP, when adopted by major DeFi protocols, provides flexibility for developers.
  • CCIP lays the groundwork for global interoperability.

Chainlink LINK/USD, a leading Web3 services platform, announced the launch of its Cross-Chain Interoperability Protocol (CCIP) on the Ethereum ETH/USD, Optimism OP/USD, Polygon MATIC/USD and Avalanche AVAX/USD blockchains.

The protocol, which is designed to facilitate the development of cross-chain applications and services, is being adopted by major DeFi protocols such as Synthetix SNX/USD and Aave AAVE/USD.

CCIP provides developers with the flexibility to build their own cross-chain solutions and enables protocols to transfer tokens across chains quickly and securely.

Sergey Nazarov, co-founder of Chainlink, stated CCIP offers a platform for building applications that can operate securely across any blockchain.

Synthetix, a DeFi protocol that provides a liquidity layer for on-chain derivatives and financial instruments, integrated Chainlink's CCIP into its Synth Teleporter feature.

This feature allows users to transfer Synth liquidity between chains by burning sUSD on the source chain and minting an equivalent amount on the destination chain.

Aave, a lending protocol, is also integrating Chainlink's CCIP into its system through BGD Labs, a Web3 development initiative.

Also Read: Unstoppable Domains Wants To Help Simplify Your Digital Identity With .eth Domains

This integration will allow Aave to launch itself onto more chains and conduct key operations like governance through a highly secure solution.

Chainlink stated that in addition to its adoption by leading DeFi applications, CCIP is also being used by Swift and over a dozen financial institutions and financial market infrastructure providers for messages and token transfers across public and private chains.

This collaboration aims to connect the global financial system to on-chain financial products, laying the groundwork for a globally accepted interoperability standard.

Read Next: NAB Places Strict Restrictions On Crypto As Australia Cyber Scam Epidemic Escalates

Join Benzinga's Future of Crypto in New York City on Nov. 14, 2023, to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsMarketsBlockchain TechnologyCCIPCross-Chain Interoperability ProtocolDeFi ProtocolSergey NazarovswiftWeb3
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!