- DeFi is increasingly collaborating with traditional financial institutions to capitalise on the tokenisation of assets.
- ANZ and Chainlink Labs have illustrated the capability for global tokenised asset movement and settlement across blockchains like Avalanche and Ethereum.
- They utilised Chainlink’s CCIP for seamless Delivery vs. Payment settlements in various currencies.
- The demonstration by ANZ emphasises the multi-chain future of finance, showing how blockchain technology can modernise and improve the efficiency of traditional financial systems.
Decentralised finance (DeFi) is working closer with institutions in a push to leverage tokenisation of assets. A recent SWIFT report highlighted that 97% of institutional investors see tokenisation as transformative for asset management.
Related: Standard Chartered’s Upgrades Year-End Outlook with Bullish Bitcoin Forecasts
ANZ and Chainlink Labs demonstrated this potential by linking blockchains like Avalanche and Ethereum for global tokenised asset movement and settlement, utilising Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
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.
AvalancheThis enables Delivery vs. Payment (DvP) settlements across networks in various currencies, modernising traditional processes with atomic, direct settlements of tokenised assets and payments.
Process Highlights Multi-Chain Future
The goal was to showcase the use of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) in a testnet setting for enabling clients to access, trade, and settle tokenised assets across different blockchains in various currencies seamlessly.
The DvP process modernises traditional trading systems’ settlement methods. ANZ bank demonstrated this by first having a customer purchase tokenised New Zealand dollar stablecoins (NZ$DC) on the Avalanche blockchain through their Digital Asset Services portal.
Subsequently, the customer bought tokenised Australian nature-based assets, represented as NFTs and priced in tokenised Australian dollar stablecoins (A$DC), on the Ethereum blockchain. This simulation illustrates how blockchain technology can innovate and enhance the efficiency of legacy financial systems.
Avalanche’s Evergreen Subnets have allowed ANZ to join the list of institutions exploring new use cases and business models while leveraging customizable networks like Avalanche.
Anurag Soin, Product Lead Digital Added Services at ANZRelated: Milestone for Cardano with USDM Introduction, First Fiat-Backed Stablecoin
AVAX Price Reacts Positively
Meanwhile, AVAX is one of the few cryptocurrencies which is recording a positive result—with AVAX gaining 2% in the past 24 hours and 19% in the past week.
At the time of writing AVAX is trading for USD $58.33 (AUD $89.12) still a long way away from its all-time high in November 2021, at that time it was trading for USD $146.22 (AUD $223.42).
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