- ANZ and Chainlink Labs unite to integrate Avalanche and Ethereum blockchains for global tokenized asset movement and settlement.
- The initiative modernizes Delivery vs. Payment processes, demonstrating cross-chain transactions and leveraging Avalanche’s customizable networks.
The Australia and New Zealand Banking Group (ANZ), in collaboration with Chainlink Labs has initiated a novel project that combines blockchain technology—more precisely, Avalanche and Ethereum—to revolutionize the way the global banking industry handles tokenized asset settlement and management.
This partnership highlights how blockchain technology can revolutionize traditional banking methods and usher in a new era of financial interoperability.
Institutional DeFi continues to explore new frontiers on Avalanche!
The Australia and New Zealand Banking Group (ANZ) and @chainlink unveiled results of a new initiative connecting Avalanche and Ethereum for the global settlement of tokenized assets 👇 https://t.co/aGREcFvGrZ
— Avalanche 🔺 (@avax) March 18, 2024
Blockchain Interoperability Unleashed
The implementation of Chainlink’s Cross-Chain Interoperability Protocol (CCIP), designed to facilitate seamless transactions between diverse blockchain environments, is a fundamental aspect of this collaboration, which was explained in detail in a previous ETH News report.
With this development, ANZ’s large customer base—which includes 8.5 million retail and institutional clients in nearly 30 markets—will be able to interact, trade, and settle tokenized assets across various blockchain platforms and currencies with greater efficiency.
The project additionally aims to revitalize the traditional Delivery versus Payment (DvP) systems, which are essential for the settlement and risk reduction of securities deals.
By combining customized smart contract technology with blockchain, ANZ and Chainlink Labs are ushering in a new era of settlement processes that are more direct, efficient, and intermediary-free.
A big success of this project was simulating a cross-chain transaction in which an ANZ customer used the bank’s Digital Asset Services platform to buy tokenized New Zealand dollar stablecoins on Avalanche and then buy Australian nature-based asset NFTs on Ethereum that were valued in Australian dollar stablecoins.
This simulation demonstrated the smooth integration of foreign currency procedures into these transactions, in addition to demonstrating the operational viability of cross-chain settlements. To explore this development in more depth, you can watch the YouTube video below.
Leveraging Avalanche Customizable Networks
Furthermore, ANZ’s smart usage of its Avalanche Evergreen Subnet shows how customized blockchain networks can benefit institutions. EVM compatibility and unique gas tokens make the Evergreen Subnet ideal for testing new business models and blockchain applications.
This cooperative venture reflects traditional financial institutions’ growing interest in On-Chain Finance (OnFi). ANZ is leading the way in transforming the global financial system by using blockchain, smart contracts, and tokenization.
On the other hand, according to a previous ETHNews report, the Avalanche Foundation has increased its portfolio by investing in KIMBO, COQ, and three other well-known tokens, diversifying its involvement in the cryptocurrency industry.
At the time of writing, the price of Avalanche native token, AVAX, had fallen 7.83% in the last 24 hours, falling to $56.53. But, this represents an increase of 18.94% over the past 7 days.