Fintechs.fi

Fintech & Crypto News

Chainlink Introduces Cross-Chain Protocol For Linking Blockchain And TradFi

Leading financial institutions worldwide are already working with Chainlink to investigate potential uses for the Cross-Chain Interoperability Protocol.

The company that created the Chainlink protocol and its native LINK tickers down $7.06 coin has launched its cross-chain protocol to facilitate communication between conventional financial institutions and public and private blockchains.

Chainlink Labs Chief Product Officer Kemal El Moujahid revealed that the Cross-Chain Interoperability Protocol (CCIP) has gone live in early access on Ethereum, Avalanche, Polygon, Arbitrum, and Optimism in a post on the Chainlink blog on July 17.

On July 20, CCIP will be available to developers on each platform on their respective tenets.

An interoperability protocol called CCIP enables businesses to move information and value across private and public blockchain environments straight from their backend systems.

The messaging infrastructure of Swift, which is utilized by more than 11,000 banks worldwide to encourage international payments and settlement, is leveraged by Chainlink’s interoperability solution.

According to the United States Financial Crimes Enforcement Network, the network alone settled about $1.8 quadrillion in transactions from over 11,000 member institutions in 2021.

A diagram displaying how financial institutions can use CCIP to transact on-chain. Source: Chainlink

On July 17, Chainlink co-founder and CEO Sergey Nazarov spoke CCIP intent to build a bridge between the on-chain and off-chain worlds:

“Just like key standards such as TCP/IP remade a fragmented early internet into the single global internet we all know and use today, we are making CCIP to connect the fragmented public blockchain landscape and the growing bank chain ecosystem into a single Internet of Contracts.”

A civilization powered by blockchain would require a required interoperability solution that can move value between networks without any interruptions, Nazarov continued.

According to Chainlink, BNY Mellon, BNP Paribas, Citi, Australia and New Zealand Banking Group, Clearstream, Euroclear, and Lloyds Banking Group are among the financial institutions looking into using the interoperability solution.

The decentralized products platform Synthetix is now working on the CCIP manner, and the decentralized finance protocol AAVE is scheduled to deploy the interoperability solution in addition to the five blockchains integrating CCIP.

According to CoinGecko, the price of Chainlink’s LINK token had risen 9.7% to $7.27 during writing during the previous eight hours, while the rest of the market had remained broadly stable.

The LINK token drowned 7.5% following the news of CCIP’s launch on mainnet. Source: CoinGecko

Cointelegraph contacted Chainlink Labs for comment, but no response was received immediately.