- Mountain Protocol has successfully integrated with Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
- This integration enables users to transfer the USDM yield-bearing stablecoin seamlessly across Ethereum, Base, and other blockchains.
Mountain Protocol recently announced its collaboration with Chainlink to enhance cross-chain functionality for its USDM yield-bearing stablecoin, which is fully backed by US Treasuries.
Enhanced Cross-Chain Functionality with Chainlink
As detailed in a recent blog post, this integration adopts Chainlink’s robust CCIP.
How USDM Transfers Work
The Mountain Protocol will utilize Chainlink’s CCIP to facilitate the transfer of its USDM token across key blockchains, including Ethereum, Optimism, Arbitrum, Base, and Polygon PoS. Users can initiate these transfers using the Chainlink-powered XSwap bridge.
Mountain Protocol launches USDM cross-chain native bridging with @chainlink‘s CCIP, simplifying transfers and unifying liquidity across multiple blockchains while ensuring security.
You can now move your USDM across chains via https://t.co/KBqYH5C2dx or via @xswap_link‘s app.… pic.twitter.com/X1Kx0ctp6k
— Mountain Protocol (@MountainUSDM) October 17, 2024
The Benefits of CCIP Integration
This latest integration with Chainlink’s CCIP provides various benefits:
- Simplified transfer procedure for users.
- Unified liquidity across multiple blockchain platforms.
- Enhanced security for transactions.
When USDM tokens are transferred, the process involves burning the tokens on the source blockchain and minting new tokens on the target blockchain, ensuring supply consistency and integrity of transactions. This empowers users to engage in decentralized finance activities across all supported ecosystems.
Chainlink’s Role in Tokenized Real-World Assets
Chainlink’s CCIP plays a crucial role in the expanding market for tokenized real-world assets (RWAs). Currently, the total value of tokenized RWAs on the blockchain exceeds $13 billion. Meanwhile, the stablecoin market amounts to approximately $171 billion, with USDM contributing around $55.5 million, as seen on rwa.xyz.
The CCIP, along with services like Proof of Reserve, Data Streams, and Data Feeds, is facilitating broader access to decentralized finance via tokenized RWAs. Additionally, CCIP is versatile and has implications beyond token transfers, such as in gaming, Web3 identities, and liquidation protection.