
- Mountain Protocol has incorporated Chainlink’s cross-chain transfer technology.
- The cross-chain interoperability protocol, CCIP, will assist USDM holders in moving their yield-bearing stablecoin across Ethereum, Base, and additional blockchains.
Mountain Protocol has revealed its plan to utilize Chainlink’s technology for the cross-chain transfer of its yield-bearing stablecoin, USDM.
The USDM token is entirely backed by US Treasuries.
Mountain Protocol adopts CCIP
As mentioned in a blog post, the integration is centered around Chainlink’s cross-chain interoperability protocol (CCIP).
Mountain Protocol will utilize this standard to facilitate cross-chain transfers of its USDM stablecoin across Ethereum, Optimism, Arbitrum, Base, and Polygon PoS. Users can take advantage of the Chainlink-enabled XSwap bridge for these transactions.
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
This marks the latest integration of CCIP by a blockchain protocol, providing users with easier transfers, unified liquidity, and added security.
Transferring USDM via CCIP involves burning tokens on the originating blockchain and minting new ones on the destination blockchain. This process ensures the consistency of supply and integrity of transactions, allowing users to engage in decentralized finance activities across all supported chains.
Chainlink’s CCIP plays a pivotal role in the expanding market of tokenized real-world assets (RWAs). Currently, the total on-chain RWA is over $13 billion, as reported by rwa.xyz. Additionally, the stablecoin market is approximately $171 billion, with USDM accounting for about $55.5 million according to rwa.xyz.
The cross-chain interoperability protocol, along with other services like Proof of Reserve, Data Streams, and Data Feeds, is facilitating wider access to DeFi through tokenized RWAs.
Beyond token transfers and DeFi, Chainlink’s CCIP finds applications in gaming, web3 usernames, and liquidation protection.