Chainlink upgrades cross-chain standard as $84B in token value rides on CCIP

Chainlink has introduced CCIP 2.0, a new version of its cross-chain interoperability infrastructure targeting institutions, tokenized asset issuers and DeFi developers, the company said Monday.

CCIP, short for the Cross-Chain Interoperability Protocol (CCIP), went live on mainnet in mid-2023 to offer a standardized and secure approach to cross-chain connectivity.

The protocol allows developers to build cross-chain applications and transfer tokens without creating their own bridge infrastructure, while using Chainlink’s oracle networks and additional security controls.

The upgrade is designed to help organizations distribute assets across multiple public and private blockchains without rebuilding the security, compliance and operational infrastructure for each network, according to Chainlink.

CCIP 2.0 lets organizations operate their own Cross-Chain Verifiers to independently verify and sign transactions before they are executed, the team added. Institutions can alternatively use third-party verification providers, adding an additional security layer to CCIP’s existing infrastructure.

Chainlink said its default Committee Verifier consists of 16 independent node operators that must reach consensus before cross-chain transactions can proceed.

“CCIP 2.0 is the missing piece for institutions to come on chain. With CCIP 2.0, institutions now have a bridge they can use to transact in a fast, cost-efficient, and secure manner on chain. It’s a bridge between trade-files and on chain,” Chainlink Labs’ Chief Business Officer, Johann Eid, said in a statement.

The upgrade gives issuers more control over settlement speeds, the company stated. CCIP remains configured by default to wait for full source-chain finality, but institutions can set custom confirmation thresholds when they want faster execution.

Chainlink said CCIP 2.0 is also designed to support Ethereum’s Fast Confirmation Rule, potentially enabling cross-chain transactions involving Ethereum to settle in seconds.

Compliance controls are built into the system through Chainlink’s Automated Compliance Engine, Chainlink noted. Institutions can apply KYC, AML and sanctions screening, transaction and exposure limits, allowlists and denylists to cross-chain transfers.

Chainlink said its ACE ecosystem includes more than 20 identity, risk and regulatory infrastructure providers.