Chainlink Facilitates Cross-Border Digital Currenc

Chainlink Powers Cross-Border Fund Transfers

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has been tapped to support the exchange of tokenized funds across national borders. According to a post on X by Chainlink, its CCIP will be used in a pilot program to securely exchange Hong Kong’s CBDC and an Australian dollar stablecoin.

The pilot project forms part of phase two of the Hong Kong CBDC project, e-HKD, with authorities keen on pushing the frontiers for cross-border functionalities. The pilot will attempt to swap e-HKD for A$DC, an Australian stablecoin, using blockchain technology for real-time settlement.

The initiative involves payment processor Visa and A$DC issuer ANZ, with Fidelity International and ChinaAMC serving as asset managers. In addition to CCIP, Chainlink confirmed that the use case also relies on its Digital Transfer Agent (DTA) solutions to enable multichain fund operations.

A closer look at Chainlink’s involvement reveals that CCIP will facilitate the Payment-versus-Payment (PvP) mechanism for digital currency swaps. Additionally, execution will be handled through the DTA model, ensuring compliance across multiple jurisdictions and token standards.