Cosmos has officially handed over management of the Inter-Blockchain Communication (IBC) cross-chain protocol to LF Decentralized Trust under the Linux Foundation. This governance transfer is designed to provide a neutral forum for banks, tech firms, and developers to establish open standards for interconnecting global financial networks.
Since launching in 2021, the IBC protocol has processed more than $50 billion in cross-chain transfer volume. The communication network connects over 200 independent chains and engages more than 500 developers, with integrations now expanding across Ethereum, Solana, and Hyperledger ecosystems.
The scale of transfers, now reaching tens of billions of dollars, requires legal backing and a governance framework independent of any single project’s interests.
Why the Protocol Was Handed to an External Body
There are three main considerations behind the decision to transfer the protocol. First, establishing neutral oversight. Second, opening the door for developers outside the Cosmos ecosystem to participate. Third, providing direct access to corporate and regulatory networks already aligned with the Linux Foundation.
Despite the change in management, the IBC protocol remains free and open-source for everyone. The fundamental change lies in the legal domain, with trademark ownership of IBC now officially held by LF Decentralized Trust.
Three Code Maintainers and a Lineup of Financial Institutions
Three entities have been appointed as technical maintainers: Cosmos Labs, Datachain, and security audit firm OpenZeppelin. The trio is responsible for maintaining protocol updates and code security.
Official backing for the move comes directly from Google Cloud and the Cardano Foundation. Several figures from banking institutions and the Web3 industry are also participating, including representatives from Wells Fargo, Figure Markets, Injective, Cronos, Zenith Foundation, and Espresso Systems.
The Cardano Foundation reaffirmed its commitment alongside Cosmos and 22 other sponsor entities to push IBC as a standard protocol for tokenized asset transactions and inter-institutional payment systems. The consortium aims to bring cross-chain communication technology into the broader institutional financial system.
For crypto industry participants, the shift marks a change in direction: cross-blockchain bridges are being prepared to serve as formal infrastructure between financial institutions, rather than merely exchange tools within community circles.
Reported by crypto.news.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
