What is Axelar and how does it work?

Axelar is a blockchain whose job is to connect other blockchains. Apps use the Axelar network to move tokens between chains and to send messages, such as an instruction to run a function on another chain. Its native token, AXL, is staked by validators to secure the network.

What does Axelar do?

Each blockchain is a separate ledger that cannot read the others, which is why crypto bridges exist. Axelar acts as a hub between them. Its own blog sums it up as a blockchain that connects blockchains.

Beyond moving tokens, Axelar offers General Message Passing, or GMP, which it rolled out in March 2022. GMP lets an app on one chain send any data to an app on another, including function calls. A user could, for example, start an action on one network that triggers a smart contract on a second network. Coinbase's guide notes that users can pay the gas for this in the source chain's token rather than buying AXL.

How does the Axelar network work?

Axelar is built with the Cosmos SDK and uses proof-of-stake consensus. Coinbase's 2022 guide said the active validator set was limited to the top 50 by stake.

Axelar places gateway contracts on each connected chain. Validators watch these gateways for incoming requests, verify them, and then write to the gateway on the destination chain to complete the transfer. The keys that control the gateways are split into shares held by validators, and the number of shares each validator holds depends on how much AXL it has staked. No single validator can move funds alone.

What is the AXL token and what is wrapped Axelar?

AXL is used to stake and secure the network, to vote on governance proposals such as upgrades, and to pay network fees in the background.

Native AXL lives on the Axelar chain, with addresses that start with "axelar." Wrapped Axelar, or wAXL, is the ERC-20 version used on Ethereum and other EVM chains. Axelar says 1 wAXL always equals 1 AXL, since the native token is held in a gateway while the wrapped one is minted. Exchanges may list either ticker, and sending to the wrong address type can lose funds.

Axelar also carries other assets. axlUSDC is created when USDC is locked in an Axelar gateway on Ethereum and an equal amount is minted on another chain. Unlike native USDC from Circle, its backing depends on Axelar's gateways and validators. What is a wrapped token explains this trade-off.

Who builds Axelar?

Axelar's co-founders published its white paper in January 2021. On December 15, 2025, Axelar announced that Circle had agreed to acquire the team of Interop Labs, one of its long-time contributors, and its proprietary technology. Axelar said the network, its foundation and the AXL token would stay independent and community governed, with Common Prefix taking over many of Interop Labs' developer activities after closing.