Key Highlights
- Coinbase chose Chainlink CCIP as the exclusive bridge for its Wrapped Assets.
- The partnership aims to expand Coinbase’s $7B wrapped asset portfolio across blockchains.
- The selection was driven by CCIP’s proven security and reliability.
Coinbase, a leading cryptocurrency exchange, today announced that it has chosen Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as the sole infrastructure layer for bridging its set of Coinbase Wrapped Assets (CWAs).
According to the announcement, the partnership is aimed at enabling secure cross-chain transactions and promoting expansion in the group of wrapped assets accumulated in a total market value of around $7 billion.
CCIP chosen as the sole solution
This selection fixes Chainlink CCIP as the sole solution for bridging a series of wrapped assets offered by Coinbase, including cbBTC, cbETH, cbDOGE, cbADA, and others, between different blockchain networks. The solution provides standardized access to all corresponding Coinbase Wrapped Assets between different chains.
Josh Leavitt, Senior Director of Product Management at Coinbase, said, “We chose Chainlink because they are an industry leader for cross-chain connectivity. Their infrastructure provides a reliable means to expand Coinbase Wrapped Asset offerings.”
This collaboration is important for Chainlink as it showcases that CCIP is a preferred standard for institutional cross-chain use cases. William Reilly, Chainlink’s Head of Strategic Initiatives, spoke about how serious this decision is for a regulated company like CCIP, stating, “CCIP was selected by Coinbase for their cross-chain needs due to CCIP’s security and reliability.”
He added, “As the leading publicly-listed firm for digital assets, Coinbase takes security and reliability for their products seriously. I am excited about accelerating the growth of Coinbase’s wrapped assets and look forward to helping bring global finance onchain.”
Built on battle-tested infrastructure
The battle-tested infrastructure on which Chainlink’s Cross-Chain Interoperability Protocol runs has been tested and proven and is now an integral part of the DeFi space. Chainlink CCIP runs on the same decentralized oracle networks, which are responsible for securing 70% of the DeFi industry globally. Chainlink has a history of processing a transaction value of over $27 trillion.
This announcement follows other cross-chain events in the world of the Coinbase ecosystem. For instance, Coinbase’s Layer 2 offering named Base announced that a bridge connecting it to blockchain platform Solana has been established, in a move guaranteed by Chainlink CCIP and also by Coinbase.
Future growth and institutional integration
The new setup has placed the Coinbase Wrapped Assets in a position for substantial growth on various blockchain platforms. This move by Coinbase will make it easier for its assets to find broader acceptance. The company has established a secure bridge for this purpose.
Chainlink’s side of this partnership, as a major player in the world of publicly listed digital assets, aims to further support Chainlink in its position as a solution that integrates traditional finance with blockchain technology. The company’s executives believed this partnership contributes to the pursuit of their goal in “helping bring global finance onchain.”
The decision of Coinbase to use Chainlink CCIP as the sole supplier for bridging their wrapped assets represents a partnership between a major cryptocurrency exchange and a prominent infrastructure company.
Also Read: Coinbase Launches Native Solana DEX Trading
