Coinbase selected Chainlink’s CCIP as the exclusive bridge for its wrapped assets. This integration links over $7 billion in assets to secure DeFi protocols.
Coinbase has chosen Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to serve as the exclusive bridge. This important decision covers all Coinbase Wrapped Assets. This essentially connects these assets to the same Chainlink oracle networks. These networks provide secure feeding of important price and data to decentralized finance (DeFi) protocols.
CCIP Ensures Security and Facilitates Ecosystem Expansion
This agreement includes major tokens such as cbBTC, cbETH, cbDOGE, cbLTC, cbADA and cbXRP. These wrapped assets have a combined and important market value. The current combined value is nearly $7 billion.
These wrapped versions are assets that are held in custody by Coinbase. They allow users to transfer exposure to other networks and applications. These external ecosystems may not bring the coins natively.
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Chainlink operates a battle-tested infrastructure. It has established a record of bringing in tens of billions of dollars. Chainlink CCIP makes use of the same decentralized oracle networks. These networks already secured more than 70% of DeFi worldwide. Furthermore, this infrastructure has helped to more than $27 trillion in transaction volume.
Chainlink CCIP offers an established foundation. This foundation is required in order to bridge the Coinbase Wrapped Assets in different ecosystems. With the sole bridging provider being Chainlink CCIP, Coinbase Wrapped Assets stands to greatly expand in reach. This will enable them to integrate into a higher number of blockchain environments.
Coinbase Senior Director, Product Management, Josh Leavitt, gave an explanation of the choice. They went with Chainlink because they are a leader in the industry for cross-chain connectivity, he said. Further, he added that their infrastructure is a good means of expanding Coinbase Wrapped Asset offerings.
Source: CoinbaseThe integration enables Coinbase wrapped assets to take advantage of the same secure and reliable oracle networks. These networks deliver real-time data to most of the decentralized finance protocols.
Recent Developments Highlight CCIP’s Growing Role
Coinbase chose Chainlink because of its position in the industry. This was of course due to its secure, decentralized network. This strategy is to reduce operator risk. This risk is always involved in moving assets between chains.
By utilizing CCIP, Coinbase is well-positioned to dramatically increase the availability and usefulness of its wrapped tokens. This makes them available to more users. It opens them up to a wider range of decentralized applications (dapps) as well.
This news comes after the new bridge was recently launched. This bridge connects the Coinbase-developed Base Layer 2 network and the blockchain of Solana. This bridge also uses Chainlink’s CCIP technology.
The technology allows the free transfer of SOL and SPL tokens between the two ecosystems. This open source bridge has already been successfully integrated by a number of dapps. These include Zora and Aerodrome. Therefore, the current deal builds on a proven track record of fruitful collaborations.
This partnership is essential in fueling the future of multi-chain DeFi. It ensures that the assets of Coinbase have the ability to move safely and efficiently throughout the entire digital asset landscape.
Source: https://www.livebitcoinnews.com/coinbase-taps-chainlink-for-cross-chain-defi-connectivity/
