Decentralized oracle network Chainlink has partnered with USD Coin (USDC) issuer Circle to boost stablecoin movement across different blockchains.
The collaboration aims to streamline USDC transfers between various crypto networks using Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Circle’s Cross-Chain Transfer Protocol (CCTP).
Chainlink CCIP is a flexible messaging system that lets developers transfer data and crypto assets between blockchains efficiently. It uses a decentralized Chainlink oracle and smart contract network to enable secure cross-chain interoperability.
Meanwhile, Circle’s CCTP is a standard bridge protocol built to seamlessly transfer USDC tokens across supported chains through minting and burning. CCTP is enabled on 7 networks – Ethereum, Arbitrum, Avalanche, Base, Noble, OP Mainnet, and Polygon.
By integrating CCTP with Chainlink CCIP, USDC transfers can leverage Chainlink’s extensive oracle infrastructure for simplified and fast movement across a wider variety of blockchains and protocols. Previously, bridges like Celer Network and Li.Fi and Wormhole incorporated CCTP support.
The pairing promises to unlock more flexible utility for one of the most-used stablecoins, USDC, across decentralized finance (DeFi) and payment applications on different chains. It also furthers the greater blockchain community’s commitment to advancing interchain operability through collaborative innovation.
