Chainlink Labs, the development firm behind the Chainlink protocol and its native token, LINK, has introduced its cross-chain protocol to facilitate interoperability between traditional financial institutions and public and private blockchains.
In a recent blog post on July 17, Kemal El Moujahid, the Chief Product Officer of Chainlink Labs, announced the launch of the Cross-Chain Interoperability Protocol (CCIP) 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 is an interoperability protocol designed to enable enterprises to transfer data and value directly between public or private blockchain environments from their backend systems.
Chainlink’s solution for interoperability leverages Swift’s messaging infrastructure, which is widely used by more than 11,000 banks globally to facilitate international payments and settlements.
In 2021 alone, the network processed approximately $1.8 quadrillion in transactions from its 11,000 member banks, as reported by the United States Financial Crimes Enforcement Network.
Sergey Nazarov, the co-founder and CEO of Chainlink, explained that CCIP aims to bridge the gap between the on-chain and off-chain worlds, much like TCP/IP transformed the fragmented early internet into the unified global internet we know today.
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Nazarov emphasized that an interoperability solution capable of seamlessly transmitting value between networks is a crucial foundation for a blockchain-powered society.
Several notable 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, according to the company.
Aside from the integration of CCIP with five blockchains, the decentralized finance protocol AAVE plans to implement the interoperability solution, while the decentralized derivatives platform Synthetix is already live on the CCIP mainnet.
Following the launch of CCIP on the mainnet, the price of Chainlink’s LINK token experienced a 9.7% surge in the previous eight hours, reaching $7.27, while the rest of the market remained relatively stable, according to CoinGecko.
Cointelegraph contacted Chainlink Labs for further comment but did not receive an immediate response.
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