Blockchain innovation has outpaced our ability to move value and data seamlessly between networks. As thousands of chains emerge, each with unique tokens and smart-contract environments, users and developers face “siloed liquidity,” fragmented user bases, and complex bridge setups.
Axelar, a Web3 interoperability platform, aims to solve this by becoming the universal interoperability layer — a single, secure “highway” letting any asset or message travel from any chain to any other, with one-click simplicity. Disruption Banking explores Axelar in detail.
What Axelar Does for Cross-Chain Web3
The Axelar Network is a decentralized platform that connects different blockchains into one seamless system. As co-founder Sergey Gorbunov says, Axelar “delivers secure cross-chain communication for Web3, so that dApp users can interact with any asset or application, on any chain, with one click.”
Axelar works like an overlay layer — or a “cross-chain internet” — built on Cosmos/Tendermint technology. It supports smart contracts and offers simple application programming interfaces (APIs) and software development kits (SDKs). Developers can use these tools to tap into many chains without building new bridges each time.
The network uses delegated proof-of-stake (DPoS) with 75+ validators chosen by quadratic voting. It also relies on gateway contracts on external chains to ensure instant finality and strong security. In short, Axelar hides the hard work of cross-chain messaging and asset transfers, just as Stripe hides the complexity of payments between banks.
Real-World Use Cases and Partnerships
Axelar’s technology is already being applied in high-profile use cases. For example, DeFi ecosystems are using Axelar to extend liquidity. Liquid-staking leader Lido selected Axelar (along with Wormhole) as a “canonical” bridge to bring Lido’s staked ETH (stETH) to Binance Smart Chain. Cointelegraph reports that this integration will allow “$23 billion in total value locked” on Ethereum to interact with the BNB Chain.
In practice, an stETH holder could send tokens via Axelar to BSC pools, unlocking yield and arbitrage opportunities across networks. Similarly, Axelar supports multi-chain stablecoins: for instance, Circle’s USDC stablecoin can flow natively between chains through Axelar’s gateways, rather than relying on multiple wrapped versions.
Axelar now bridges Bitcoin via Stacks, letting Bitcoin assets flow to 70+ other blockchains, including top networks like Bitcoin, Ethereum, IBC, EVM chains, Hedera, and Base. Its Interchain Amplifier lets developers deploy gateway contracts themselves, tapping Bitcoin’s $2 trillion market cap across networks. This could bring Bitcoin into DeFi — like staking on other chains, but strong risk management is still key.
Institutional Adoption and Strategic Partnerships
Axelar’s appeal extends beyond DeFi. In late 2023, JPMorgan’s Onyx Digital Assets group piloted cross-chain tokenized fund transfers using Axelar, demonstrating how wealth managers can rebalance portfolios across multiple networks.
Deutsche Bank, collaborating on the DAMA 2 tokenized-asset platform just last month, likewise adopted Axelar to issue and manage assets on Ethereum Layer-2 while preserving regulatory compliance. Axelar is also integrating with Ripple’s XRPL EVM sidechain, which emphasizes regulatory features while still tapping the broader crypto ecosystem.
OpenZeppelin announced open-source cross-chain contract libraries in partnership with Axelar’s dev arm, Interop Labs, simplifying secure messaging for developers. A NASA data-sharing pilot with Stratos also relies on Axelar to move both tokens and telemetry between chains, underscoring its versatility for enterprise use cases.
More recent 2025 partnerships include Ubyx (launch partner), XION (enhanced interoperability), Elys Blockchain (DeFi expansion), TON Foundation (integrating with Axelar’s Mobius Development Stack), and Sui (main net integration in May 2025). These additions highlight Axelar’s expanding ecosystem.
Axelar’s Growth Prospects
The Web3 world is growing fast and becoming increasingly multi-chain. Gorbunov notes the industry is moving from tens to hundreds to thousands of networks, much like the internet’s early days. Each new chain fragments liquidity and users, so people need tools that work across all networks.
As at the time of writing, DeFi ecosystem holds more than $125 billion, per DefiLlama data, but that could jump into the trillions when assets like stocks and real estate go on-chain.
Analysts expect the global blockchain interoperability market to grow around 25-30% a year to push its value into the billions by 2030. In 2024, Cognitive Market Research valued it at around $700 million and says it will enjoy compound annual growth rates (CAGR) of 25.6% between 2024 and 2031. The Business Research Company forecasts a $2.55 billion valuation by 2029 thanks to CAGR 29.3%.
Source: Business Research Company
In February, the “Cobalt” upgrade introduced a burning mechanism, where 98% of cross-chain transaction fees paid in Axelar’s token (AXL) are permanently destroyed, making the network deflationary, enhancing sustainability. The remainder will be sent to community proposal grant pools as previously.
Features like the live Axelar Virtual Machine (AVM), and the launched Interchain Token Service (ITS) Hub, developers can build fully cross-chain apps — like AMMs or loans — that simple bridges can’t support.
Bridging Today’s Chains for Tomorrow’s Finance
Axelar’s vision is clear: let users and developers “combine the assets they want with the applications they want,” regardless of blockchain boundaries. By abstracting cross-chain plumbing into a secure, developer-friendly layer, Axelar frees teams to innovate on product features instead of integration mechanics.
Early endorsements — from Lido and Circle in DeFi to JPMorgan and Deutsche Bank in institutional finance — signal that both retail and institutional markets see promise in this approach.
While alternative architectures and regulatory scrutiny introduce uncertainties, Axelar’s expanding feature set — the Axelar Virtual Machine (AVM) and Interchain Token Service (ITS) hub — positions it well to lead an omnichain future. For anyone betting on a Web3 world of interconnected applications and seamless value flows, Axelar offers the rails that could make it possible, ushering in a new era of truly borderless digital finance.
#blockchain #DigitalAssets #cryptocurrency #Bitcoin
Author: Ayanfe Fakunle
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
How XRP Became a Leading Cryptocurrency | Disruption Banking
Is Onyxcoin (XCN) a Top 100 cryptocurrency? | Disruption Banking
BNY and BlackRock Bet Big on Blockchain’s Future | Disruption Banking
