Chainlink Initiates CCIP, Merging Blockchain And TradFi

A number of leading global banks have joined forces with Chainlink to investigate potential uses for their newly released Cross-Chain Interoperability Protocol (CCIP).

Chainlink Initiates CCIP, Merging Blockchain And TradFi

Chainlink, the company behind the Chainlink protocol and the native LINK token, has launched its cross-chain protocol. This cutting-edge technology targets seamless interoperability between traditional financial institutions and public as well as private blockchains.

On July 17, Chainlink Labs' Chief Product Officer, Kemal El Moujahid, revealed in a blog post that its Cross-Chain Interoperability Protocol (CCIP) had entered the early access phase on a variety of blockchain platforms such as Ethereum, Avalanche, Polygon, Arbitrum, and Optimism. Developers across these platforms will gain access to CCIP on their corresponding testnets starting July 20.

TradFi <> DeFi Interoperability

CCIP is a pioneering interoperability protocol that allows corporations to transfer data and value directly from their backend systems between diverse public or private blockchain environments.

To facilitate international payments and settlements, Chainlink's interoperability solution uses Swift's communication infrastructure, employed by over 11,000 banks globally. In 2022 alone, FIN messages reached approximately 45 million per day, and $150 trillion in transactions.

How financial institutions can use CCIP to transact on-chain
How financial institutions can use CCIP to transact on-chain (Photo: Chainlink)

CEO and co-founder of Chainlink, Sergey Nazarov, elaborated on July 17 about the intentions of CCIP to construct a bridge connecting the on-chain and off-chain realms. An interoperability solution capable of transmitting value without friction between networks will be a vital piece in the puzzle for a blockchain-enabled society, added Nazarov.

Among the other financial institutions exploring the potential of Chainlink's interoperability solution are BNY Mellon, BNP Paribas, Citi, Australia and New Zealand Banking Group, Clearstream, Euroclear, and Lloyds Banking Group, according to Chainlink's statement.

Decentralized finance protocol AAVE is preparing to integrate the CCIP, and decentralized derivatives platform Synthetix has already gone live on the CCIP mainnet.

Subscribe to our newsletter and follow us on Twitter.

Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to REX Wire.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.