Coinbase Chooses Chainlink CCIP to Bridge Wrapped Assets

Coinbase is undertaking a significant step regarding its wrapped assets. These assets now have a new method for transferring across different blockchains. 

Coinbase chose Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as the exclusive bridge for its wrapped assets.

Wrapped Assets?

Wrapped assets are tokens that reflect significant cryptocurrencies on other blockchains. Coinbase also has wrapped versions of cbBTC, cbETH, cbDOGE, cbLTC, cbADA and cbXRP. These wrapped assets enable users to move value across chains without holding the original asset directly. To keep this system safe, the bridge moving them must be secure, and that’s where Chainlink CCIP comes in.

Why Coinbase Picked Chainlink CCIP

Coinbase selected Chainlink CCIP as the exclusive bridge for its wrapped assets. This is a big deal because it means every cross-chain transfer for these tokens will run through CCIP’s infrastructure.

Chainlink isn’t new to this. Chainlink secures over 70% of DeFi and has processed $27 trillion in transactions. It’s known for its strong reliability. CCIP uses decentralized oracle networks that avoid single points of failure. This protection is crucial for billions of wrapped assets.

Josh Leavitt said Coinbase chose Chainlink because it leads the industry in cross-chain connectivity. He added that Chainlink offers the safety and reliability they need. Chainlink’s William Reilly added that Coinbase’s decision reflects CCIP’s strong security and dependability.

Expanding to New Ecosystems

Now that Chainlink CCIP is the exclusive bridge, Coinbase wrapped assets can be deployed to new blockchains much more easily. It means more liquidity, more utility, and more ways for users to interact across the onchain economy.
This update also comes right after Base announced its new Base–Solana bridge, which Chainlink CCIP also secures. The Coinbase and Chainlink partnership is extending to various products.

The partnership makes wrapped assets more available across chains. It also makes them safer for users, developers, and traders. It also establishes a single, reliable system rather than a series of bridges.

Conclusion

Coinbase’s choice of Chainlink CCIP as its sole bridge is a big step toward safer, smoother cross-chain movement for wrapped assets. The partnership sets the stage for a more connected blockchain ecosystem. More networks will join the system in the future, making it even more powerful.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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