Bitlayer Migrates to Chainlink CCIP, Unlocks New Era for Bitcoin DeFi

Bitlayer adopts Chainlink CCIP to enable secure cross-chain transfers, expanding Bitcoin DeFi access across major EVM-compatible blockchain networks.

Bitlayer, a layer 2 network built on Bitcoin, has officially adopted Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as its main infrastructure for cross-chain transfers. This is a huge milestone in increasing liquidity and growing the abilities of Bitcoin DeFi. The integration now enables secure transfers of BTR, USDC, USDT, ETH, and wstETH between Bitlayer and Ethereum.

Bitlayer Brings Bitcoin DeFi to EVM Chains via YBTC

The announcement was issued on Chainlink’s official X account, and it is a sign of the increasing synergy between leading blockchain networks. Bitlayer will soon be taking the next step by helping to enable cross-chain functionality for YBTC, Bitlayer’s BTC-pegged asset, using CCIP. This move is in support of a larger mission to build a decentralized and liquid financial ecosystem with Bitcoin.

YBTC is built on the BitVM framework, which is a breakthrough that enables the introduction of Turing-complete smart contract functionality to the Bitcoin ecosystem via optimistic validation. This enables Bitcoin holders to mint a trust-minimized version of BTC that can securely move from blockchain to blockchain. Chainlink CCIP will be the backbone of this cross-chain expansion, ensuring safety, speed, and scalability.

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Currently, Bitlayer’s YBTC.B is live on a number of Ethereum Virtual Machine (EVM)-compatible networks, such as Ethereum, BSC, Avalanche, and Plume Network. These integrations pave the way for new opportunities for yield for Bitcoin holders on multiple chains. Bitlayer has plans to expand YBTC.B to even more chains, pushing its adoption even further.

Moreover, YBTC tokens minted through Bitlayer’s BitVM Bridge are also to be deployed more broadly across chains. Chainlink’s CCIP will be used to support this expansion. As a result, users will be able to access YBTC through more platforms, and developers will get powerful tools to create secure Bitcoin-based DeFi applications.

CCIP Integration Unlocks New BTCFi Potential for Bitlayer

Adopting Chainlink CCIP has had great benefits for Bitlayer. One major improvement is the increase in liquidity which provides strength to the ecosystem and attracts more development. Users can now move assets securely by using CCIP-powered tools such as Transporter, XSwap, and Interport. Consequently, cross-chain transfers have become easier and safer for everyone involved.

CCIP itself is well known for its security and proven infrastructure. It uses the Decentralized Oracle Networks (DONs) of Chainlink to power its consensus layer. These networks have already secured tens of billions of dollars in DeFi transactions. As a result, they have facilitated over $25 trillion in on-chain transaction value since 2022.

In addition to security, CCIP provides an always-on infrastructure. This means there is no downtime and provides a reliable foundation for every cross-chain transaction. Its architecture is also future-proof, meaning that developers can upgrade and scale without any friction. In addition, new blockchains and tokens can easily be added, and that too with complete ownership and security.

Chainlink’s Chief Business Officer, Johann Eid, was delighted with the integration and described it as a huge step towards a fully connected Bitcoin DeFi ecosystem. Kevin He, Co-founder of Bitlayer, shared similar excitement, stating that CCIP would help drive innovation and support long-term growth of BTCFi projects. This partnership may change the future of decentralized finance.