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Written by Sneha Ahlawat » Updated on: April 23rd, 2025
In the rapidly evolving blockchain ecosystem, interoperability has become more than just a buzzword—it's a necessity. With multiple blockchains operating in silos, the demand for seamless interaction between different platforms is driving the rise of cross-chain tokens. These tokens are designed to function across multiple blockchain networks, offering flexibility, utility, and scalability that single-chain tokens simply cannot match.
As the world of crypto token development matures, developers, startups, and enterprises are beginning to focus on creating digital assets that aren't limited to one ecosystem. Cross-chain tokens are part of this trend, and understanding how they work—and how to build them—is becoming increasingly important for anyone in the blockchain space.
In this blog post, we'll explore the technical structure of cross-chain tokens, practical development strategies, and real-world implementation examples. Whether you're part of a token development company or a solo developer diving into blockchain, this guide will walk you through the essential steps of building tokens that operate across chains.
Most tokens created during the earlier days of blockchain—particularly those on Ethereum—were built with a single-chain mindset. ERC-20 tokens, for example, work seamlessly on the Ethereum network but require wrapping, bridging, or re-deployment to function on networks like BNB Chain, Avalanche, or Polygon.
This lack of interoperability results in fragmented liquidity, poor user experience, and higher development and operational costs. Users are often forced to use third-party bridges, which can be slow and vulnerable to security breaches. In fact, according to a report by Chainalysis, over $2 billion was lost to cross-chain bridge exploits in 2022 alone.
These limitations have pushed the blockchain community toward creating more interoperable solutions, with cross-chain tokens emerging as a leading answer.
Cross-chain tokens are digital assets that can be used across two or more blockchain networks without compromising functionality or security. The goal is to maintain the same tokenomics, supply, and utility regardless of the network on which the token is being used.
They’re not just replicas of the same token on different chains—they’re engineered to be synchronized versions of the same asset, often using protocols that handle cross-chain communication, atomic swaps, and interoperability bridges.
There are generally three models used to build cross-chain tokens:
Mint-and-Burn Model – Tokens are burned on one chain and minted on another.
Lock-and-Mint Model – Tokens are locked in a smart contract on the original chain, and a pegged version is minted on the destination chain.
Native Multi-Chain Deployment – Identical tokens are deployed natively on each chain and synchronized via messaging protocols.
Each method has pros and cons regarding security, complexity, and cost.
To build cross-chain tokens effectively, a token development company needs to be well-versed in interoperability protocols and infrastructure. Here are a few technologies powering the cross-chain movement:
Polkadot and Cosmos are designed with interoperability at their core. Their parachain and hub-and-zone models allow seamless data and token transfer between chains in their ecosystem.
LayerZero is an omnichain interoperability protocol that allows smart contracts to communicate across chains using a unified messaging layer.
Wormhole, Anyswap, and Axelar are popular bridging protocols that facilitate asset movement between blockchains like Ethereum, BNB Chain, Solana, and Avalanche.
Chainlink CCIP (Cross-Chain Interoperability Protocol) offers secure cross-chain communication for smart contracts, enabling token transfer and logic execution across blockchains.
Using these protocols, developers can maintain consistency and control of token supply, avoid double-minting, and reduce the likelihood of exploits.
1. Choose Your Target Blockchains
The first step is to determine which blockchain networks your token needs to support. Ethereum and BNB Chain are popular choices due to their large user bases, while newer chains like Arbitrum, Optimism, and Solana are gaining traction.
Evaluate each network's cost, transaction speed, developer tools, and user base. If your application is DeFi-focused, prioritize chains with robust DeFi ecosystems. If you're targeting gaming or NFTs, Solana or Avalanche might be a better fit.
2. Decide on the Cross-Chain Model
Next, choose the cross-chain architecture that aligns with your goals:
Use the lock-and-mint model for simplicity and existing bridge support.
Consider the mint-and-burn model if you want greater control over supply.
For advanced interoperability, use LayerZero or Axelar for native multi-chain deployment with direct communication between contracts.
This decision will determine your development approach, security model, and the tools you’ll use.
3. Develop and Deploy Smart Contracts
Smart contracts must be written for each chain where the token will exist. While base token logic can be similar, each contract must interact with its respective chain’s bridge or messaging protocol.
Use tested token standards like ERC-20 or BEP-20 to ensure compatibility. To prevent supply inconsistencies, include functions for minting, burning, and transferring tokens that are triggered only through verified cross-chain events.
For example, if using LayerZero, you’ll need to write contracts that respond to lzReceive() events, which are triggered by cross-chain messages.
4. Integrate with a Bridge or Interoperability Protocol
Bridges connect your token's versions across different chains. Choose a reputable, secure bridge that supports your chosen networks.
If you’re building an advanced product, you might integrate multiple protocols to maximize reliability and failover. Axelar, for instance, offers APIs and SDKs to help developers implement secure cross-chain messaging and token transfers.
Always audit the bridging solution and your contracts. Given the history of bridge vulnerabilities, security cannot be an afterthought.
5. Maintain Token Synchronization
Once deployed, the token’s supply and state must remain consistent across all networks. This is often handled through event listening and cross-chain messaging.
Implement monitoring systems to detect mismatches, failed transfers, or stuck messages. Some token development companies even build custom middleware to manage synchronization logic and ensure uptime across chains.
Regular audits, testing under load, and emergency shutdown procedures are critical to keeping your token secure and reliable.
Real-World Examples
USDC has become a model for cross-chain token deployment. Rather than using bridges, Circle deploys native USDC contracts on each chain and uses internal mechanisms to ensure supply consistency.
Axelar USDC (axlUSDC) is a wrapped version of USDC on non-native chains, maintained by Axelar’s bridge infrastructure.
Multichain’s AnyToken allows developers to create tokens that can move across 30+ chains without building custom bridges for each one.
These projects highlight the diversity of approaches in the cross-chain space, depending on control, trust assumptions, and security preferences.
Challenges and Considerations
Cross-chain token development is complex, and success depends on careful planning and robust execution. Key challenges include:
Security: Cross-chain interactions expose tokens to additional attack vectors, particularly on bridges. Smart contract audits are essential.
Latency: Transfers between chains are often slower than native transactions, especially when using third-party bridges.
User Experience: Wallets must support multiple chains, and users may need to pay gas fees in multiple native tokens.
Cost: Multi-chain deployments involve higher development and operational costs, including ongoing maintenance and monitoring.
Despite these challenges, the benefits of cross-chain tokens—such as broader reach, better liquidity access, and ecosystem agnosticism—make them a powerful tool for developers and enterprises alike.
As Web3 becomes increasingly interconnected, token development companies are expanding their offerings to include cross-chain capabilities by default. The demand for decentralized applications that operate smoothly across Ethereum, Solana, BNB Chain, and beyond has never been higher.
These companies provide infrastructure, security auditing, protocol integration, and lifecycle management for cross-chain tokens, enabling businesses to focus on utility and adoption rather than the technical burden of interoperability.
According to a 2024 Messari report, over 60% of new tokens launched in the past year have been multi-chain or cross-chain compatible—a clear signal of where the industry is heading.
Building cross-chain tokens is no longer an experimental endeavor—it’s becoming a standard in modern crypto token development. As blockchain ecosystems continue to grow and overlap, creating assets that can fluidly operate across chains is critical for scalability, adoption, and innovation.
Whether you’re an individual developer, a startup founder, or part of a seasoned token development company, understanding the mechanics, tools, and best practices of cross-chain tokens gives you a serious edge in today’s decentralized landscape.
The future of blockchain isn’t about choosing one chain over another—it’s about making them all work together. Cross-chain tokens are a big part of that future.
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