Chainlink has successfully implemented Circle’s cross-chain transfer protocol (CCTP) within its CCIP system. This integration allows Chainlink to securely handle transfers of the stablecoin USDC across different blockchains. Let’s see all the details below.
Chainlink optimizes connection: Circle’s implementation of the CCTP protocol
As anticipated, Chainlink recently integrated Circle’s Cross-Chain Transfer Protocol (CCTP) into its CCIP System. This is to ensure a secure transfer of the USDC stablecoin across different blockchains, with a variation of +0.17%.
Chainlink has stated that the joint adoption of both technologies opens up new use cases for stablecoins, both in the context of payments and in the DeFi.
Sergey Nazarov, co-founder of Chainlink, expressed enthusiasm for the support of stablecoin adoption in a diverse range of cross-chain contexts.
It has also highlighted the developers’ appreciation for the defense-in-depth approach of the CCIP system, characterized by multiple levels of decentralization, particularly relevant in the context of its use with USDC.
Although both technologies have similar acronyms, they have key distinctions.
The Chainlink CCIP constitutes a generalized cross-chain messaging framework that allows developers to transfer data and resources between chains, leveraging a smart contract-based mechanism powered by Chainlink oracles.
On the other hand, Circle, the issuer of USDC, manages the CCTP, a standardized bridge protocol that allows users to make native USDC transfers by burning and minting the stablecoin across supported chains.
The CCTP is currently available on seven networks, including Arbitrum, Avalanche, Base, Ethereum, Noble, OP Mainnet, and Polygon PoS.
Several interoperability protocols and bridge projects, including Celer Network, Li.Fi, and Wormhole, have already successfully integrated Circle’s CCTP. Chainlink is the latest to join this list of integrations.
Brief focus on the price of Chainlink (LINK)
In recent times, Chainlink (LINK) has shown a remarkable increase in value, reaching $15.82 in Santiment’s recent on-chain report.
This marks a significant peak in the last two weeks, while the supply of LINK on exchanges drops below 15%, a level not seen in about four years.
A surprising fact is the 6% increase in portfolios containing at least one LINK coin, approaching the 6% of the historical maximum. This indicates intensified activity and potentially dynamic market prospects for Chainlink.
The cryptographic analyst Ali Martinez highlights that Chainlink has consolidated a strong demand zone in the price range between 14.8 and 15.2 dollars, involving 17,650 addresses and resulting in the acquisition of 85.12 million LINK tokens.
With few immediate resistance obstacles, the analysis suggests that LINK could undertake an upward movement, with a target projection towards the $20 threshold.
This is based on the observation of a 4% increase in the last month, highlighting a predominance of buyers in a context of interaction between bullish and bearish forces.
The recent breakout of LINK over the weekend, which reached a two-week high of $15.86, has helped to keep the cryptocurrency above the critical support of $15.
Analysts are optimistic about the upcoming bullish trends of LINK. They highlight a crucial moment in which surpassing $17 could propel the cryptocurrency towards the $20 threshold and beyond.
On the contrary, a decrease could put the crucial support at $13 at risk.
Circle: United States ready for stablecoin regulation by the end of the year
The CEO of Circle, Jeremy Allaire, recently expressed his confidence regarding the imminent implementation of stablecoin legislation in the United States.
During an interview at the World Economic Forum in Davos, Switzerland, Allaire highlighted a growing momentum and bipartisan support for the regulation of stablecoins.
Highlighting the global shift towards digital currencies, Allaire emphasized the need for the United States to consolidate its leadership in this emerging sector.
He observed that other countries have already taken actions to regulate digital versions of their currencies and urged the United States to follow suit to protect consumers and maintain a competitive advantage.
Allaire emphasized the urgent need to take action, stating the following:
“Digital dollars are emerging globally; other governments are already regulating digital dollar currencies before the United States. So I think there is a strong desire to act and assert US leadership and involve the right consumer protection.”
Allaire’s optimism is fueled by recent progress in the US regulatory landscape, with lawmakers, courts, and regulators actively addressing the challenges of stablecoins.
Dante Disparte, Chief Strategy Officer and Global Head of Public Policy at Circle, has shared this optimism.
Specifically, highlighting bipartisan support for the regulation of stablecoins and hoping that the policy on payments related to these coins will be implemented at the beginning of the new year.