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Smart Link Crypto: What Token-Linking Technology Does for Cross-Chain DeFi
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Smart Link Crypto: What Token-Linking Technology Does for Cross-Chain DeFi

FinanceFeeds

Token-linking technology allows crypto assets to operate across multiple blockchains natively. Traditional bridges lock tokens on one chain and mint wrapped versions elsewhere. This approach has cost the industry over $2.8 billion in exploit losses. Cross-chain interoperability protocols now offer a different model for asset transfers. Instead of relying on wrapped tokens, these systems burn and mint original assets. The result is a more secure path for value to move between networks. Chainlink CCIP surpassed $21 billion in transferred volume by July 2026. Competing protocols like LayerZero and Wormhole also process billions in cross-chain value. This article examines how token-linking standards reshape cross-chain DeFi infrastructure and security. Cross-chain token standards define how digital assets move between separate blockchain networks.

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