- Chainlink’s Cross-Chain Interoperability Protocol (CCIP) offers a groundbreaking solution for the fragmented world of on-chain finance, addressing interoperability issues.
- Australia and New Zealand Banking Group (ANZ) leverages Chainlink CCIP to test cross-chain transactions using their stablecoin, A$DC.
Tokenised assets are ushering in a new era for the banking industry. Recent findings from an EY report disclose that 93% of institutional investors see enduring value in these assets. However, the current financial model for on-chain operations remains scattered, with assets and services stuck in isolated blockchains. This fragmented ecosystem hampers the adoption rate of tokenised assets, posing challenges in terms of accessibility, liquidity, and complex integration processes for financial establishments.
Interoperability: The Key to On-Chain Finance
For tokenisation to fully flourish, interoperability is essential. The Bank for International Settlements (BIS) paints a vision of a “unified ledger” – a new financial market infrastructure. This ledger would merge central bank money, tokenised deposits, and tokenised assets on a programmable platform. BIS anticipates the coexistence of various ledgers, each dedicated to a particular use case but interlinked for smooth functioning.
In a quest for this vision, June saw Swift collaborate with numerous financial institutions and Chainlink, a Web3 services platform, to delve into the possibilities of interlinking blockchains with the existing financial infrastructure. Their objective was to give institutions a unified access point to diverse networks, thereby curtailing operational hurdles and investments. Chainlink’s CCIP emerged as a potential solution, offering an uncomplicated, secure, and scalable mechanism for financial entities to link with various blockchains.
ANZ’s Exploration into Decentralised Networks
As one of the major banks, ANZ recognizes the potential in tokenised assets. Their ongoing experimentation with decentralised networks follows a ‘test-and-learn’ mantra. ANZ’s ventures with its A$DC stablecoin and tokenisation of tangible assets have already provided pivotal insights.
This proactive approach was evident when ANZ, capitalizing on insights from the Swift venture, paired up with Chainlink CCIP. The duo executed a test transaction, emulating the purchase of a tokenised asset using A$DC and an ANZ-issued NZ-dollar-denominated stablecoin. This move showcased the potential of technical interoperability, laying a foundation for future customer-driven transactions. In reference to this successful demonstration, a tweet from Chainlink stated,
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.@ANZ_AU, one of the largest institutional banks in Australia, used Chainlink #CCIP to successfully demonstrate a cross-chain purchase of tokenized assets with A$DC, an ANZ-issued stablecoin of the Australian Dollar: https://t.co/l9iPE2JuWD
— Chainlink (@chainlink) September 14, 2023
ANZ remains optimistic, emphasizing the necessity of interconnecting prevailing blockchain networks for the broader acceptance of digital assets. With the industry continually evolving, ANZ eagerly awaits further collaboration and experimentation, hoping to unravel the vast possibilities within.
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