Tokens are going multichain, and it’s getting easier

One candidate solution is Axelar’s new Interchain Token Service, which automates the process of deploying across EVM-based networks

article-image

Axelar and fotaro100/Shutterstock, Adobe modified by Blockworks

share

Launching a token on any given blockchain is generally not difficult or complicated. But launching a token across multiple chains has been more of a challenge.

Referring to a “native chain” in contrast to a “bridged” or “wrapped” version of a token is the status quo today.

A new service from general message passing protocol Axelar aims to change that, making it trivially easy to launch tokens on any or all of its supported networks with no coding skills required.

Called the Interchain Token Service (ITS), the new tool maintains the fungibility and properties of any ERC-20 token, while allowing them to move across any of the EVM-compatible blockchains in Axelar’s orbit — 15 chains currently, with more on the way.

ITS is permissionless to use and tokens also enjoy trust-minimized bridging using a “mint and burn” mechanism, features which don’t currently exist in the industry according to Axelar’s DeFi head Jason Ma.

“The other alternative solution today on the market is LayerZero OFT, but oft is not a code free solution, and based on the feedback we heard from developers, it can take anywhere between like a week of work to like months of work,” Ma told Blockworks.

Read more: LayerZero’s wstETH bridge deployment draws Lido DAO ire

Frax, which is about to launch its own Ethereum rollup, Fraxtal is among the first to use ITS. Nader Ghazvini, co-founder of Fraxtal, hopes the service will help attract developers to its new chain.

“Integrating Interchain Token Service from the start, the Fraxtal layer-2 enables seamless, no-code interoperability for many builders joining at the ground floor,” Ghazvini said in a statement.

ITS can be used to deploy a new token across multiple chains in one step, but it also encompasses “token manager” which can unify the deployment of native tokens that are already on multiple chains.

That puts it in the same category as Circle’s cross-chain transfer protocol (CCTP) used to bridge native USDC between chains, only without the centralized counterparty.

“It’s essentially a decentralized open-source CCTP that any protocol can use and deploy themselves,” Ma said.

Read more: Circle moves native USDC offering to Cosmos mainnet

The token manager can be used by teams looking to link native token deployments, for example, to fulfill compliance requirements.

“For the chains that they consider strategically important with lots of liquidity, they want to natively mint,” Ma said, offering Ethereum, Polygon and Arbitrum as examples. For other chains, “they can just use ITS off-the-shelf and use an Axelar-version of that token on the other chains, and it would still be fully interoperable,” he said.

Only EVM-chains are supported for now, but Axelar — itself a Cosmos chain — plans to expand the service to the Cosmos Interchain later this year.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million