ZKSync integrates Chainlink’s CCIP for cross-chain interoperability

2024-09-16 07:27:26

Abstract generation in progress

Decentralized oracle network Chainlink has expanded its cross-chain interoperability protocol to zero-knowledge proofs platform ZKsync.

Chainlink (LINK) announced on Sept. 16 that blockchain protocol Chainlink CCIP was live on the ZKsync (ZK) Era mainnet, with the integration aimed at enhancing the interoperability between decentralized finance and traditional finance.

Connecting DeFi and TradFi

CCIP on ZKSync aligns with the goal of having a unified layer 2 eco on Ethereum (ETH). It is also part of a broader effort to increase development and adoption of zero-knowledge technology through decentralized applications that support decentralized finance and traditional finance integration.

Marco Cora, director at the ZKsync Foundation, commented that Chainlink CCIP’s launch on the ZKsync Era will drive further growth in real-world asset tokenization. This comes as more of the world’s leading financial institutions begin adopting on-chain solutions.

Cora added:

“The need for transparent and secure cross-chain standards becomes paramount to grow the adoption of blockchains in traditional finance and with the integration of Chainlink CCIP, ZKsync provides a gateway for these institutions to come on chain.”

Marco Cora, director at the ZKsync Foundation

ZKsync developers will now have access to a feature that enables smart contract-powered cross-chain token transfers. Chainlink’s programmable token transfers allow users to embed instructions into tokens sent across chains, leveraging smart contracts to create more interconnected decentralized applications.

Interoperability helping tokenization market

CCIP’s launch on ZKsync’s follows Chainlink’s latest milestone in the tokenized assets market.

This is after it partnered with Fidelity International and Sygnum to bring net asset value on-chain. NAV on-chain boosted Fidelity International’s $6.9 billion Institutional Liquidity Fund.

ILF is a RWA initiative that saw Sygnum bring $50 million of ZKSync creator Matter Labs’ treasury reserves onto the ZKsync network. Chainlink and market competitor Pyth Network are eyeing more of this web3 traction with recent integrations with Sony Group’s recently launched L2 Soneium.

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