KEY TAKEAWAYS
- Chainlink is revolutionizing the financial sector by enabling institutions to create compliant blockchain applications, facilitating over $16 trillion in value.
- In collaboration with DTCC, Chainlink is automating data dissemination across blockchains, aiding in fund tokenization with major financial players.
- Chainlink and Swift have developed a secure method for cross-chain tokenized asset transfers, involving leading financial institutions like Citi and BNP Paribas.
- Chainlink’s partnerships with Fidelity International and Sygnum aim to enhance transparency in tokenized asset management through onchain NAV data.
Chainlink is making significant strides in the financial sector by enabling institutions to develop customized and compliant blockchain applications. The platform has facilitated over $16 trillion in value, supporting major infrastructures and institutions in transitioning to onchain operations. Details of these developments were announced here.
Financial Market Infrastructures Embrace Blockchain
The Depository Trust and Clearing Corporation (DTCC), a key player in post-trade market infrastructure, processes over $2 quadrillion annually. In collaboration with Chainlink, DTCC is working to make net asset value (NAV) data accessible across various blockchains. This initiative aims to automate data dissemination and provide historical data access, facilitating fund tokenization. Participants in this project include American Century Investments, BNY Mellon, and JP Morgan, among others.
Additionally, Chainlink has partnered with Euroclear and Swift to address the lack of real-time standardized data in fragmented markets. This collaboration demonstrates how AI, oracles, and blockchains can convert unstructured financial data into structured, machine-readable formats.
Innovations in Tokenized Asset Transfers
Swift, in partnership with Chainlink, has showcased a secure method for transferring tokenized assets across chains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This collaboration involved over a dozen leading financial institutions, including Citi, BNP Paribas, and Lloyds Banking Group.
ANZ Bank has also demonstrated a cross-chain settlement use case using Chainlink’s CCIP. The bank issued stablecoins backed by the Australian and New Zealand dollars to facilitate cross-currency, cross-chain purchases of tokenized assets. Furthermore, Chainlink announced the introduction of CCIP Private Transactions, enhancing privacy and compliance for financial institutions like ANZ under the Monetary Authority of Singapore’s Project Guardian initiative.
Asset Management and Central Bank Collaborations
Chainlink’s collaboration with Fidelity International and Sygnum aims to bring Net Asset Value (NAV) data onchain, enhancing transparency for tokenized assets. This partnership supports Sygnum’s onchain representation of Fidelity International’s Institutional Liquidity Fund.
Under the Monetary Authority of Singapore’s Project Guardian, Chainlink, alongside SBI Digital Markets and UBS Asset Management, demonstrated automated fund management using blockchains and smart contracts. This initiative seeks to improve efficiency in fund management operations.
In another development, Chainlink, Swift, and UBS Asset Management have successfully integrated tokenized assets with existing payment systems, enabling secure transactions across multiple blockchains and fiat payment rails.
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