Chainlink CCIP: Unlocking the Full Potential of Tokenized Assets | Michael Robinson, Shamus Noonan

[Music] perfect thank you very much yesterday I talked to someone really smart at our booth and they said I've been coming to this conference for many years I've been in the industry for many years but I'm starting to see the same thing over and over again and I want to see what's the new Big Innovative thing for our industry that's really going to take things to the masses and I said great have you heard about meme coins not actually I said what do you think about tokenized assets and she said look I think they're great but we're still really far away from that actually coming and being something something of use today I'm going to talk about why we are not far away from tokenized assets reaching Mass adoption and how chain link ccip unlocks massive tokenized asset adoption the Global Financial system has been evolving since the beginning of History we started with bartering 6,000 years ago coins paper and now we're in digital moving on blockchains what we like to call onchain Finance onchain Finance though is still just a small fraction of a percent of the overall value across Global Finance we're $2.4 trillion market cap overall the rest of the value in the world is hundreds of trillions so the question then becomes how do we unleash onchain Finance how do we move all this value from Legacy inefficient old Financial cial systems onto blockchains it's time to tokenize the system tokenizing the system means bringing all the offchain value into tokens onchain so we can conduct Global Finance on chain these tokenized assets can be anything from currencies to equities bonds infrastructure some tokenized assets will be easier to tokenize than other but at the end of the day if anything can be tokenized it will be tokenized why tokenized anything tokenized on chain has a superior is represented in a superior uh way it inherits all the amazing beautiful properties that blockchains offer let's take an example of a treasury bill tokenized brought on chain you now have increased composability among all blockchain applications transparency reduced costs Global access fractional ownership new markets democratization tokenization brings all these incredible properties of blockchain to offchain assets another example the US dollar right now the most successful tokenized asset currency dollar tokenized most people know this as a stable coin and again inherence all these incredible properties of blockchain and we're starting to see other assets like Commodities gold become tokenized this is the biggest Market opportunity in human history ever over the next six years many financial institutions and experts expect that tokenized assets can reach 16 trillion in value right now stable coins and other uh assets that are becoming tokenized are again a fraction of a percent of this Market opportunity there's such a massive opportunity here and it's not just me saying this 97% of institutional investors agree that tokenization is going to revolutionize finance and I mentioned 16 trillion over the next years the whole world world's financial and and value is over $800 trillion in value this can all eventually be tokenized and brought on chain so what are the benefits of tokenizing I mentioned a few earlier a few that stick out is very important our first of all Global accessibility when you tokenize something your Market expands from a small siloed area to the globe anyone with an internet connection a tokenized asset system reduces the risk of fraud we have the CEO of Black Rock $9 trillion assets under management quoted saying this eliminates all corruption by having a tokenized system this is incredible and of course the driving force that is going to push assets to become tokenized uh and is most obvious is the reduction in cost we're going from middlemen paperwork uh you know confusing systems transactions to blockchain Smart contract Oracle networks shortens value chains reduce transaction costs and of course you have automated workflows so then the question next becomes okay what's holding tokenized assets back this sounds too good to be true there are many problems I think one of the most important problems and the one I'm going to talk about today specifically is interoperability we all know blockchains are inherently disconnected from other chains a tokenized asset issued on a single chain is isolated to that single chain you're disconnected from all other markets this multi-chain fragmentation really creates almost these digital islands of disconnected liquidity and without interoperability across blockchains tokenized asset adoption will fail no interoperability means fragmentation of liquidity this is a very hard problem to solve we've had almost $3 billion of bridge hacks over the last two years this is a number that we must do everything in our power to reduce and eliminate we need a highly secure interoperability standard and and we do have it it's chain link ccip chain link ccip solves the blockchain interoperability problem for tokenized assets ccip enables tokenized assets to be securely sent across blockchains ccip enables users on any chain to buy a tokenized asset issue a tokenized asset on one chain access the markets of every other and last but not least ccip has some incredible incredible features one of which are programmable token transfers by which you can send a token and data simultaneously across chains a token with a message writing on top of it with instructions for what to do with that token on the destination chain which enables a whole world of incredible opportunities uh Beyond what's ever been possible how is chain link ccip so secure chain link ccip is secured by chain link industry standard decentralized Oracle networks the same networks that have enabled over10 trillion of value transacted across blockchains are now securing cross-chain transactions and chain link ccip works with a defense in-depth approach to security there's not just a single way to stop and and and ensure security it's defense in depth the core of the defense in depth of ccip is something called the risk management Network and the risk management Network verifies every single transaction through ccip providing secondary approval and ensures that there are no uh any sort of issu choose by providing anomaly detection securing tokenized asset transfers across chains so where do we go from here with the interoperability problem solved by chain link ccip it's time to tokenize the system and we're already getting started with this if you're interested in learning how to move usdc cross chain with ccip you're welcome to scan the QR code come see us at our booth and I'm very happy to welcome Sheamus from circle to the stage and we're going to have a talk about the partnership and collaborations we're working on thank you Michael appreciate it hey everyone good to see you great presentation thank you does this work can everyone still see you want me to come over there yeah if you you want to grab a seat here cool yeah thanks so much Sheamus for for joining um maybe you could just tell the crowd a bit about yourself and how the conference been for you so far sure hey everyone my name is Sheamus Nan I'm on the business development team at Circle I lead all of our blockchain Partnerships there I've also had the pleasure of working with the chain link Labs team so really excited to be here thank you very much and uh Shane so how do you feel about you know tokenized assets and and where are things headed with usdc tokenized assets it's definitely the buzzword of the conference I'd say tokenize assets or AI it's it's up there for both and if folks who don't know usdc USC is one of the original tokenized Assets in it's the dollar it's a digital dollar and what we're really excited about and we're going to keep proliferating and helping push the industry forward is access to that dollar and it's a lot of what Michael talked about and tokenizing an asset inheritant opens that up it's open it's permissionless and it's borderless and that's what we're really excited about and what I'd say is usdc was was introduced in 2018 and we saw some early initial product Market fits in Defi and that's been great and that's going to continue to proliferate what we're really excited about is Phase 2 which we would call the utility phase and tokenize assets is a great example of exactly how users and individuals and companies can start to use this in day-to-day operations so that's that's what i' say we're really excited about yeah thank you for that and chain link and circle are partnering on a number of things uh could you talk about what you're excited for with that absolutely absolutely I would say once we started talking it was very inheritant clear there was a lot of synergies and shared goals around what do we want to do in the web 3 landscape what can we do to help accelerate and push this industry forward and one of those unlocks is is helping developers and helping them build protocols in and you know the next app that might actually on board the next half a billion not billion yet users into web 3 so the more we were talking and engaging the more inheritant we had a lot of synergies around that so like you mentioned being able to move usdc from one chain to another in the most secure and safe way through ccip um there's also a handful of other services and and folks will'll have a b bunch of call to actions of just where developers can do what services they can use and with the heart of everything in mind of how can we make it safe easily and accessible and especially for all of the web2 developers we're hearing so much from them of saying hey these are requirements that we have in our web 2 apps we need in the web 3 landscape and I would say both of our companies have really taking it to heart and trying our best to to make that a reality yeah absolutely and uh I mentioned earlier but we did uh have a master class that anyone can take by scanning that QR code and we have many other uh uh developer events plan for building with usdc and ccip and we're really excited for that um so usdc amazing amazing stable coin almost $30 billion market cap um how are you thinking about the future of kind of multichain yeah so usdc natively is on 15 different blockchains and we hope to continue to expand to more and our goal is to go where the users are going seeing what the use cases are how can we enable a safe asset with a unified source of liquidity on these new blockchains but inherently as you launch usdc natively on these new blockchains users are presented with options of like okay my usdc is on arbitrum I might want to go do something on base how do I get that over and that's why we rolled out our cross chain trans transfer protocol last year last April and it essentially it's a public permissionless way for users to to flow usdc from one chain to another through a Min and burn functionality and we like to say it's even teleporting you're not bridging it and we want to have a world where users don't even have to think about security or anything like that they can just move their usdc from one chain to another um and not have to worry about hacks or exploits similar to to what you had up there so in terms of interoperability we're looking for for single unified sources of liquidity we're looking for the most safe and secure way for users to bring usdc from one chain to another so that that's that's how we're thinking about it and I'm sure there's there's more services and things that will hopefully roll out maybe in conjunction with you folks for allowing users to get usdc from one chain to another easily yeah thank you for that and we just we see a future of uh more blockchains more public chains private chains the entire multi-chain ecosystem expanding and um you know uh to be able to transfer usdc uh via ccip is something that our developers and everyone's very excited for and um yeah we we've been really excited about that recently so yeah um thank you Sheamus just last question um you know looking forward is there anything else you'd like to mention to chain link developers uh watching this uh talk yeah definitely we're going to have a ton of stuff we're partnering together on we're going to have a ton of call to actions um I I'll be sticking around I think Michael will as well so if anyone's thinking about building a project or curious about integrating police will free swing by we have a lot of call to actions I would say I'm I'm just like closing thoughts I'm really excited about some of the use cases I've heard and I was talking to someone earlier today and they're like hey I've been working in the crypto industry for seven years last month I finally got paid in usdc holy it's so easy and that that's what we're excited about right like he said he's like truly he's like I live in England and and I get paid in usdc and he said it took about a minute and a half for that transfer and he said I saved $300 in Bank fees so he like that's I I feel like this year there's a lot of energy but there's a lot of things that are backing up the the claims of hey we're going to do this we're going to do that so we're really excited to partner together and I'm sure there's folks in the audience that are thinking about something come give it a shot come build come work with us um so in terms of call to action join the Discord we have a Discord um for usdc if you want to come join the community it's build on Circle you can find us on X or Twitter build on Circle as well and I know we're going to have a handful of collaboration and and content but uh super excited to hopefully meet some of you folks and excited to see where we're going to be a couple months a year from that Michael yeah absolutely um and for chain link you can follow us on Twitter you can hop in our Discord and we have a nice big beautiful campsite Booth uh uh at the back of the other building please stop by and uh let us know if you have any further questions thanks everybody and thank thank so [Applause] much