Chainlink has enabled the transfer of Coinbase’s cbBTC tokens from Base to Monad via its Cross-Chain Interoperability Protocol. The deployment has brought over $5 billion in Bitcoin-backed liquidity to the network for rapid settlement and low fees.
As per the announcement, the asset can be used for lending, trading, and other financial products on the Monad network. This includes the development of markets for the asset by projects such as Curvance and Neverland.
CCIP Delivers Secure, High-Value Cross-Chain Transactions
The cbBTC token, which is issued by Coinbase and has a 1:1 ratio to Bitcoin held in custody, is already active on prominent networks, including Ethereum, Base, Solana, and Arbitrum. Developers now have access to a Bitcoin-based token that is liquid, fast, and inexpensive.
This integration provides a gateway to new financial products tied to Bitcoin. Developers can now develop derivatives, spot, lending, and other products tied to cbBTC, a core asset class. Activity is expected to increase as more Bitcoin-backed products are live on-chain.
Source: X
Chainlink announced that the CCIP has processed over $28 trillion in on-chain transaction value. The system has a standardized security approach to cross-chain transactions, reducing operational risks for developers and users.
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According to the founder of the Monad Foundation, Keone Hon, “cbBTC provides developers with a robust asset class to develop novel financial systems.” Johann Eid of Chainlink Labs stated that CCIP allows developers to securely move billions of dollars in tokenized Bitcoin, meeting the needs of institutions.
Chainlink Boosts cbBTC Utility for Bitcoin Users
The partnership enhances Chainlink’s position as a prominent cross-chain infrastructure developer. Its oracle network secures more than $100 billion in value, spread across several blockchains, and has recently expanded its presence in the institutional developer ecosystem.
Coinbase continues to expand cbBTC to make it more useful to Bitcoin holders worldwide. Users can now borrow, earn, and trade without ever selling their Bitcoin, and there are currently several platforms offering 3% in interest rates on cbBTC deposits.
Monad gains direct access to deep Bitcoin-backed liquidity. The network is designed for up to 10,000 transactions per second and sub-second finality. This is helpful for capital-intensive applications.
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