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Chainlink launches cross-chain token standard

Chainlink launches cross-chain token standard

GrafaGrafa2025/01/16 05:10
By:Mahathir Bayena

Chainlink (CRYPTO:LINK) has officially launched its upgraded Cross-Chain Interoperability Protocol (CCIP) v1.5, introducing a new Cross-Chain Token (CCT) standard that allows developers to deploy tokens across more than twenty blockchains in a self-serve manner.

This upgrade went live on January 15, 2025, and is designed to enhance the developer experience significantly.

With CCIP v1.5, developers can take full control of their tokens, enabling zero-slippage transfers and improved programmability without needing to modify their existing smart contracts.

The new standard facilitates the creation of CCTs by allowing developers to deploy pre-audited coin pool contracts, effectively converting any ERC-20-compatible asset into a CCT.

Chainlink emphasised that this upgrade simplifies the onboarding process for new and existing tokens into the CCT standard.

A CCIP Token Manager has also been introduced, providing a user-friendly interface for managing CCT deployments.

Zach Rynes, a Chainlink community ambassador, successfully tested the system by creating a Cross-Chain Token called CLG and transferring it between layer-2 networks Base and Arbitrum in just a few minutes.

In addition to these features, CCIP aims to improve access to bridged USDC (CRYPTO:USDC), addressing liquidity fragmentation issues that have historically impacted decentralised finance (DeFi) adoption across multiple blockchain ecosystems.

Following the announcement of the upgrade, Chainlink's native token LINK experienced a price increase of around 6%, reaching an intraday high of $20.60.

Despite facing challenges over the past month, including a decline of approximately 30% from its mid-December peak, LINK's recent performance shows signs of recovery.

Whale investors have also been active, purchasing 1.35 million LINK in the past 24 hours, which contributed to pushing its price back towards resistance levels at $20.

As Chainlink continues to innovate with its CCIP upgrades, it positions itself as a key player in enhancing cross-chain interoperability within the blockchain ecosystem.

At the time of reporting, the Chainlink (LINK) price was $21.88.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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