Supports cross-chain functionality for Chainlink (LINK) stablecoin USDC

Expansion of stablecoin USDC

Chainlink, a decentralized oracle network, announced on the 16th that it has integrated Circle’s Cross-Chain Transfer Protocol (CCTP) into its Cross-Chain Interoperability System (CCIP).

This integration will enable Chainlink’s blockchain developer ecosystem to use CCIP and CCTP to develop applications that enable seamless transfer of stablecoin USDC between different blockchains.

connection:Chainlink (LINK) | Investment information/real-time price chart

This move will expand the scope of USDC usage in payments, cross-chain transfers, and even DeFi interactions.

Chainlink’s CCIP and Circle’s CCTP both provide cross-chain utilization solutions, but their uses are different. CCIP is backed by Chainlink’s security infrastructure and is responsible for monitoring and verifying anomalous activity in cross-chain operations.

Chainlink is the industry-leading oracle network that serves as the foundation for referencing over $9 trillion in transaction value. It also features real-world assets (RWA) and off-chain data distribution, as well as secure cross-chain messaging between different blockchains. Chainlink supports the foundation of applications and markets across a wide range of industries, including banking, decentralized finance (DeFi), international trading, and the gaming industry.

connection:Chainlink upgrades staking functionality to improve security and flexibility

US Circle trends

Circle’s CCTP, on the other hand, is a standardized bridge protocol that allows users to process USDC transfers by burning and issuing stablecoins between supported chains. CCTP is currently available on seven networks: Arbitrum, Avalanche, Base, Ethereum, Noble, OP Mainnet, and Polygon PoS.

Chainlink joins the lineup of interoperability-focused bridge protocols such as Celer Network, Li.Fi, and Wormhole that also integrate Circle’s CCTP.

The US company Circle is the issuer of USDC, with a circulating value of $25 billion (approximately 3.68 trillion yen) and second place in market share after Tether (USDT). Circle recently filed its first IPO documents with the SEC (U.S. Securities and Exchange Commission). The company aimed to go public through a SPAC in 2021, but the deal was canceled as it could not be completed within the deadline. As of February 2022, Circle’s valuation was $9 billion.

According to Circle’s latest report, USDC trading volumes are increasing significantly in the Asia-Pacific region. Volumes in the region grew faster than other major regions such as North America (up 19%) and Western Europe. Demand for remittances is the main driver of this growth, particularly in Asian countries such as the Philippines, India, Singapore, Hong Kong, Malaysia, and Thailand.

Additionally, regulatory frameworks for foreign-issued stablecoins are being developed in Singapore, Japan, and Hong Kong. Against this backdrop, Circle plans to strengthen its business development in the Asian market.

connection:USDC issuing company circle advances initial public offering (IPO)

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