Decentralized oracle network Chainlink (LINK) has launched for early access users its Cross-Chain Interoperability Protocol (CCIP), aiming to bolster cross-chain applications and services.

San Francisco-based fintech firm Ripple is confident that U.S. banks and other financial institutions will soon become more receptive to the adoption of XRP for cross-border payments after a recent landmark ruling determined that the token “is not necessarily a security on its face.”

Popular decentralized finance (DeFi) protocol Aave has launched its stablecoin, GHO, on the Ethereum blockchain in a move that enables Aave users to mint the new token using the platform’s third version.

Top stories in the Crypto Roundup today:

• Chainlink Launches Cross-Chain Interoperability Protocol
• Ripple Hopes U.S. Banks Will Embrace XRP After Favorable Ruling
• DeFi Protocol Aave Launches GHO Stablecoin on Ethereum
• Chart of the Week: BNB’s Aggregate Open Interest and Average Funding Rate

Chainlink Launches Cross-Chain Interoperability Protocol

Decentralized oracle network Chainlink (LINK) has launched for early access users its Cross-Chain Interoperability Protocol (CCIP), aiming to bolster cross-chain applications and services.

The protocol is now functional for these users on the Avalanche, Ethereum, Optimism, and Polygon blockchains, after the protocol was tested by at least 25 partners that are now starting to move to the mainnet.

These partners include major decentralized finance protocol Aave and the decentralized liquidity platform, Synthetix. The protocol, according to the Chainlink team, will soon be adoptable by other leading decentralized finance protocol.

The interoperability protocol has been a key component behind Chainlink’s partnership with SWIFT, the international payment and messaging system predominantly used by banks worldwide.

Their partnership, announced in June, aims to explore the possibility of incorporating dozens of financial institutions within blockchain networks, with SWIFT using CCIP to connect with different blockchains.

Ripple Hopes U.S. Banks Will Embrace XRP After Favorable Ruling

San Francisco-based fintech firm Ripple is confident that U.S. banks and other financial institutions will soon become more receptive to the adoption of XRP for cross-border payments after a recent landmark ruling determined the token “is not necessarily a security on its face.”

The firm is reportedly anticipating discussions with American financial firms regarding the use of its On-Demand Liquidity (ODL) product, which employs XRP for money transfers, will commence in the third quarter.

Ripple has been embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) for three years over allegations that the company and two of its executives raised $1.3 billion through illegal XRP sales. Ripple countered the allegations, arguing that XRP should be classified as a commodity rather than a security.

The legal conflict adversely impacted Ripple's business, causing the loss of at least one customer and investor. MoneyGram, the U.S. money transfer giant, ended its partnership with Ripple in March 2021.

Tetragon, a UK-based investor that had previously backed Ripple, sold its stake back to the company following an unsuccessful lawsuit to redeem its cash. Ripple’s general counsel, Stu Alderoty, recently expressed confidence that the recent ruling would encourage American banks to reconsider the use of Ripple's ODL product.

He conveyed his hopes that the decision will provide financial institutions with the assurance to explore solutions to cross-border transaction challenges and associated high fees through conversations with Ripple.

DeFi Protocol Aave Launches GHO Stablecoin on Ethereum

Popular decentralized finance (DeFi) protocol Aave has launched its stablecoin, GHO, on the Ethereum blockchain in a move that enables Aave users to mint the new token using the platform’s third version.

Earlier this month, the Aave community greenlit a governance proposal that set the stage for the launch of GHO on the Ethereum blockchain. The stablecoin, which was first announced in July 2022, underwent a testing phase on Ethereum’s Goerli testnet in February 2023 and has undergone multiple audits.

GHO is for now a relatively small player in the global stablecoin market, particularly when compared with the top ten stalwarts of dollar-pegged coins. The current circulating supply of GHO is around 2.5 million tokens, which accounts for a modest 0.0016% of the overall $127 billion stablecoin economy.

GHO has so far garnered 274 holders on Ethereum and has seen over 1,000 on-chain transactions.

Chart of the Week: BNB’s Aggregate Open Interest and Average Funding Rate

In this week's Chart of the Week, we examine the aggregate open interest and average funding rate of Binance Coin (BNB). The average funding rate of #BNB has dipped to a negative -0.0802%, marking its lowest level since May 2nd. This factor, coupled with an increase in open interest, suggests high levels of short positioning on BNB perpetual futures.

Since November 2022, there has been a noticeable trend between the average funding rate and Binance Launchpad token launches - which require investors to lock BNB to gain access to coins launching on the platform.

Investors seeking to maintain delta neutrality can hedge themselves via perpetual contracts. In this instance, they accept funding rate costs to mitigate against market risk.

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