The Australia and New Zealand Banking Group (ANZ), the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the Depository Trust and Clearing Corporation (DTCC) are some of the institutions in the traditional financial system that are innovating in blockchain technology. via Chainlink.
Chainlink's cross-chain interoperability solution, Cross-Chain Interoperability Protocol or CCIP, is being used by several of the world's largest financial institutions to explore the potential of blockchain technology, in order to develop new successful use cases of this technology in the world of finance.
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CCIP is a cross-chain interoperability solution which solves connectivity problems in the blockchain ecosystem and will allow the cross-chain economy to be unlocked. Chainlink presented this solution in July of this year with the aim of facilitating access to the multiple applications that are part of the blockchain ecosystem, as well as their use and integration with financial solutions from the traditional world.
Chainlink and SWIFT accelerate the adoption of tokenized assets
One of Chainlink’s most significant collaborations in the traditional financial system is with SWIFT, the global interbank financial communications network, which connects over 10.000 banks and financial institutions worldwide.
Chainlink reported that SWIFT is using CCIP to scale the adoption of tokenized assets, one of the most important and interesting current trends in the crypto industry.
Chainlink co-founder Sergey Nazarov said during SWIFT's Sibos event in Toronto that Chainlink is developing a CCIP-powered blockchain interoperability model to allow banks to securely transfer tokenized assets between public and private blockchains.
CCIP facilitates interoperability between blockchains efficiently, so banks can connect to the multiple networks that exist in the ecosystem without having to integrate with “hundreds of blockchains,” Nazarov said.
The collaboration between Chainlink and SWIFT will exponentially increase the utility of real-world tokenized assets. Through CCIP, these assets can flow freely between banks' private blockchains and public networks, including the DeFi decentralized financial ecosystem.
ANZ executes cross-buy into CCIP
Australia and New Zealand Banking Group, one of Australia's largest banks, successfully executed a cross-purchase of tokenized assets with the bank-issued A$DC stablecoin using CCIP. A$DC is a stablecoin whose value is pegged to the Australian dollar.
The Australian bank stated that the tokenization of assets on the blockchain is transforming the way banking works, but that it is currently a fragmented operating financial model, with assets and services that are isolated from each other on different blockchain networks. .
Chainlink's CCIP solution solves this problem by offering interoperability between blockchains, which in turn facilitates the adoption of tokenized assets, access to liquidity, and integration between financial institutions.
Incorporating capital markets into the blockchain ecosystem
DTCC is helping Chainlink bring capital markets to the blockchain.
Chainlink's cross-chain interoperability solution enables financial institutions to incorporate innovative Web3 solutions into their existing systems and infrastructure, accelerating the real-world impact of blockchain technology.
The American financial services company also indicated that it is working alongside SWIFT on the adoption of CCIP to unlock access to liquidity in global markets.
Chainlink estimates that at least $100.000 billion in US market assets could move onto the blockchain in the coming years as the asset tokenization sector evolves.
Furthermore, Chainlink is collaborating with at least a dozen banks and financial institutions, in addition to ANZ, SWIFT and DTCC, to accelerate the adoption of blockchain technology and connect Web3 with the traditional financial system.
LINK earns 13% weekly
The recent collaborations announced by Chainlink are boosting the price of its native LINK cryptocurrency in the market. According to data from CoinMarketCap, the price of LINK has risen 7% in the last few hours and more than 13% this week, trading above $6,6 per unit.
Source: CoinMarketCap
LINK trading volume increased 280% on Monday, reaching $360 million in daily trading.
Currently, LINK is the 19th largest cryptocurrency on the market, with a market capitalization of $3.690 billion. The rise in LINK price moved Stellar and Avalanche to 21st and 22nd place, respectively, in the market.
Continue reading: Chainlink Functions is launched, a platform to bring services from Web2 to Web3
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