Chainlink Expands Onchain Finance With Major Banks
Chainlink partnered with major banks to test tokenized finance, including J.P. Morgan’s Kinexys and Ondo Finance cross-chain settlement trials.
ANZ Bank used Chainlink CCIP to complete cross-border stablecoin settlement involving tokenized asset purchases.
SBI Group and other institutions adopted Chainlink infrastructure for tokenized assets, payments, and reserve verification systems.
Chainlink has announced several partnerships with major financial institutions as banks explore blockchain-based finance systems. The company worked with J.P. Morgan’s Kinexys, Ondo Finance, ANZ Bank, SBI Group, and others on tokenized assets, payments, and cross-chain settlement solutions. The projects focused on connecting traditional financial systems with blockchain networks.
Banks Test Tokenized Finance Solutions
According to Chainlink, Kinexys by J.P. Morgan and Ondo Finance completed a cross-chain Delivery versus Payment transaction. The test connected Kinexys Digital Payments’ permissioned blockchain with Ondo Chain’s testnet.
The transaction exchanged Ondo Chain’s Short-Term U.S. Government Treasuries Fund, known as OUSG, as the asset leg. Kinexys Digital Payments handled the payment leg. Chainlink Runtime Environment coordinated the settlement process.
The system connected both networks while supporting security, compliance, and scalability requirements. Similarly, ANZ Bank demonstrated a cross-chain settlement process using Chainlink’s Cross-Chain Interoperability Protocol.
The bank issued Australian dollar and New Zealand dollar-backed stablecoins. Through CCIP, ANZ completed a cross-border and cross-currency purchase of a tokenized asset using its stablecoins.
The developments continued with Japan’s SBI Digital Markets, which adopted Chainlink as its infrastructure solution. SBIDM, the digital asset division of SBI Group, integrated CCIP for transferring tokenized assets across public and private blockchains.
Institutional Partnerships Expand Across Regions
Notably, SBI Digital Markets also uses Chainlink CCIP Private Transactions. The feature protects private information, including transaction amounts and counterparty details. According to Chainlink, SBIDM is developing a digital asset platform covering issuance, purchases, settlement, and secondary trading of tokenized assets.
Meanwhile, SBI Group and Chainlink announced a strategic partnership focused on digital asset adoption in Japan and the Asia-Pacific region. The partnership includes tokenized real-world assets, net asset value data, payment versus payment transactions, and stablecoin reserve verification.
The companies plan to use Chainlink CCIP and Chainlink SmartData for these financial applications.
Digital Asset Projects Add New Use Cases
Emirates NBD also welcomed Chainlink into its Digital Asset Lab following a memorandum of understanding at Abu Dhabi Finance Week. The lab includes members such as PwC, Fireblocks, R3, and Chainalysis.
Additionally, Wenia, the digital asset company from Bancolombia Group, uses Chainlink Proof of Reserve for its COPW stablecoin. The system provides verification of Colombian peso reserves backing the stablecoin.
Chainlink said Proof of Reserve connects directly with COPW’s minting process to help prevent issuance without sufficient reserves.
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