ANZ Adopts Chainlink’s Cross-Chain Interoperability Protocol for Tokenized Asset Purchases
The Australia and New Zealand Banking Group (ANZ) has announced its adoption of Chainlink’s cross-chain interoperability protocol (CCIP) to simulate tokenized asset purchases. ANZ recently completed a test transaction using A$DC and an ANZ-issued NZ-dollar-denominated stablecoin. This move reflects ANZ’s exploration of decentralized networks and its “test-and-learn” approach.
Institutional Investors’ Confidence in Tokenized Assets
ANZ Portfolio Lead Nigel Dobson acknowledges the increasing support from institutional investors who believe in the future of tokenized assets. According to a recent EY report, 93% of institutional investors see long-term value in tokenized assets.
Dobson recognizes that the early stage of development has resulted in dispersed assets and services across different blockchains. He believes that Chainlink’s CCIP can provide a solution by serving as the blockchain interoperability standard, enabling financial institutions to connect various blockchain networks.
ANZ partnered with Chainlink CCIP for a test transaction that demonstrated secure cross-chain settlement of tokenized assets using A$DC and ANZ’s NZ-dollar stablecoin.
Australian Banks’ Embrace of Digital Assets
Dobson emphasizes the importance of connecting existing blockchain networks for mass adoption. Australian banks, including ANZ, have been actively exploring decentralized networks and stablecoins. National Australia Bank (NAB) developed a stablecoin named AUDN based on the Ethereum network, while the Commonwealth Bank of Australia (CBA) took a cautious approach to cryptocurrency after initially advocating for it.
CBA halted the launch of a crypto services app in May 2022, making it the first Australian bank to announce such services. The decision was influenced by the ongoing crypto winter, and the bank is waiting for additional customer feedback and regulatory clarity before proceeding.
Hot Take: ANZ Paves the Way for Tokenized Asset Adoption
ANZ’s adoption of Chainlink’s CCIP for tokenized asset purchases demonstrates the growing confidence in decentralized networks among institutional investors. By partnering with Chainlink, ANZ aims to overcome the challenges of dispersed assets across different blockchains and pave the way for smoother cross-chain operations. This move aligns with the broader trend of Australian banks exploring digital assets and stablecoins, although each bank has approached cryptocurrency with varying levels of caution. ANZ’s embrace of tokenized assets sets a positive example for other financial institutions looking to enter the crypto space.
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