Cello integrates the Chainlink CCIP protocol
On May 29, Ethereum layer-2 network Cello announced the integration of the ChainLink CCIP protocol for cross-chain integration.
Silo CEO Eric Nakagawa released a statement following CCIP's deployment to Silo: “A canonical cross-chain infrastructure can accelerate the long-term growth and adoption of the Silo ecosystem. Nakagawa added, “As the only interoperability solution that achieves Level 5 cross-chain security, CCIP provides a great option for developers, developers and the wider community to consider and adopt.
Cross-chainability continues to be a major focus of the blockchain industry as real-world asset tokenization is poised to become the next frontier of growth.
According to Chainlink, the total value of all real world assets is a staggering $874 trillion. Even a small part of that value comes to the blockchain
Unfortunately, these assets are spread across multiple platforms, industries and chains, creating efficiency and financial problems for investors and speculators seeking to unlock the value embedded in traditionally illiquid assets such as real estate and collectors.
Chainlink CCIP protocol
This is where the Chainlink CCIP protocol comes in. It also serves as a ‘layer 0' cross-chain communication protocol between public blockchains and traditional financial architectures.
Related: Arta Techfin, Chainlink expand partnership to simulate real-world assets
In the year In 2023, Chainlink successfully piloted SWIFT – an international messaging protocol for interbank communications.
Verbatim's network and communication protocol has also undergone similar testing with the Depository Trust and Clearing Corporation (DTCC) and several banking partners, including JP Morgan and BNY Mellon, to bring real-world assets on-chain.
Chainlink's experiments with SWIFT and DTCC show the potential collaboration between blockchain, traditional banking and global trade.
Problems with cross-border transactions
Currently, cross-border transactions are slow, costly and inefficient, with many middlemen inserting themselves into the transaction.
Payment processors, banks, credit card companies and data processors are all involved in the transaction, each taking their own cut in the form of fees and delaying the transaction.
Additionally, regulatory compliance mars transactions with inefficiencies and costly fees that hinder the transaction end and prevent smaller players from doing business globally.
Much of the business world is operating with outdated technology in the digital age, which is why traditional banking transactions often take days to post. This also applies to simple and domestic transactions that do not rely on cross-border messaging.
