The development firm behind the Chainlink protocol, along with its native token LINK, has launched its Cross-Chain Interoperability Protocol (CCIP). The protocol aims to provide interoperability between traditional financial institutions and various public and private blockchains.
In an announcement on the Chainlink blog, the Chief Product Officer of Chainlink Labs, Kemal El Moujahid, revealed that CCIP has gone live under early access on Ethereum, Avalanche, Polygon, Arbitrum, and Optimism. Starting July 20, developers on these platforms will be able to access CCIP on their respective testnets.
CCIP serves as an interoperability protocol that enables enterprises to transfer data and value directly between their backend systems and public or private blockchain environments. Chainlink’s solution leverages Swift’s messaging infrastructure, which is widely used by more than 11,000 banks globally for international payments and settlement. In 2021, the network settled approximately $1.8 quadrillion in transactions from over 11,000 member banks, according to the United States Financial Crimes Enforcement Network.
Chainlink’s co-founder and CEO, Sergey Nazarov, explained that CCIP aims to bridge the gap between on-chain and off-chain worlds. The goal is to create an “Internet of Contracts” that connects the fragmented public blockchain landscape with the growing ecosystem of bank chains. Nazarov drew a parallel between CCIP and the TCP/IP standards that transformed the early internet into the unified global network we use today.
Several financial institutions, including BNY Mellon, BNP Paribas, Citi, Australia and New Zealand Banking Group, Clearstream, Euroclear, and Lloyds Banking Group, are exploring the use of Chainlink’s interoperability solution. Additionally, the decentralized finance protocol AAVE plans to implement CCIP, while the decentralized derivatives platform Synthetix is already live on the CCIP mainnet.
At the time of publication, the price of Chainlink’s LINK token had risen by 9.7% to $7.27 in the previous eight hours, while the rest of the market remained relatively stable, according to CoinGecko.
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