ZKSync integrates Chainlink’s CCIP for cross-chain interoperability

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

Chainlink (LINK) announced the launch of its blockchain protocol Chainlink CCIP on the ZKsync (ZK) Era mainnet on September 16. This integration aims to increase interoperability between decentralized finance and traditional finance.

Connecting DeFi and TradFi

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

Marco Cora, director of the ZKsync Foundation, stated that the launch of the Chainlink CCIP during the ZKsync Era will lead to further growth in real-world asset tokenization. This comes as many of the world’s leading financial institutions begin to adopt on-chain solutions.

Cora added:

“The need for transparent and secure cross-chain standards is of great importance to increase the adoption of blockchains in traditional finance, and with the integration of Chainlink CCIP, ZKsync provides a gateway for these institutions to join the chain.”

Marco Cora, Director of ZKsync Foundation

ZKsync developers 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 cross-chain and leverage smart contracts to create more interconnected decentralized applications.

Interoperability helps tokenization market

The launch of CCIP on ZKsync follows Chainlink’s recent milestone in the tokenized asset market.

This comes after partnering with Fidelity International and Sygnum to bring net asset value to the chain. The on-chain NAV increased Fidelity International’s $6.9 billion Institutional Liquidity Fund.

ILF is an RWA initiative by Sygnum, which brought $50 million from ZKSync creator Matter Labs’ treasury reserves into the ZKsync network. Chainlink and its market rival Pyth Network are aiming for more of this web3 traction with recent integrations with Sony Group’s recently launched L2 Soneium.