Exploring Tokenized Asset Settlement
Blockchain platform Avalanche has announced a partnership between Australia and New Zealand Banking Group (ANZ) and Chainlink Labs. This collaboration aims to investigate the potential of on-chain digital assets for global movement and settlement. By utilizing Chainlink’s Cross-Chain Interoperability Protocol (CCIP), ANZ and Chainlink Labs endeavor to connect the Avalanche and Ethereum blockchains for uninterrupted delivery versus payment (DvP) settlement of tokenized assets in various currencies.
ANZ’s Unique Approach
ANZ, a prominent provider of banking products and services in nearly 30 markets, is taking a unique approach to exploring on-chain digital assets. Through the use of Chainlink’s CCIP, ANZ is exploring how customers can access, trade, and settle tokenized assets across multiple networks and currencies using a Delivery vs. Payment mechanism. This approach aims to enhance settlement efficiency and risk management for digital assets categorized as securities and their transactions.
- ANZ validates customers’ access to tokenized assets
- Improves settlement efficiency and risk management
Abstracting Complexities with Chainlink
According to Avalanche, Chainlink’s CCIP plays a crucial role in abstracting the complexities involved in moving tokenized assets across different blockchains. This enables atomic cross-chain Delivery vs. Payment settlement. In a recent simulation, ANZ facilitated a transaction where a customer purchased tokenized assets on both Avalanche and Ethereum, with FX conversion between New Zealand and Australian dollar stablecoins.
- ANZ leverages CCIP for abstraction of complexities
- Facilitates a transaction involving tokenized assets on two blockchains
Utilizing Avalanche’s Evergreen Subnet
ANZ leveraged Avalanche’s Evergreen Subnet, which provides Ethereum Virtual Machine compatibility, permissioning, and custom gas token features. This allowed ANZ to explore new use cases and business models within customizable networks like Avalanche. The collaboration between ANZ, Chainlink, and Avalanche highlights how traditional financial institutions are embracing blockchain technology to enhance capital markets.
- ANZ explores new use cases with Evergreen Subnet
- Traditional financial institutions embrace blockchain technology
AVAX Price Surge
Amid these developments, Avalanche’s token AVAX has been on an upward trend, experiencing over a 60% increase in the last 30 days. Currently trading at $58.31, just below its 22-month high, AVAX surged by 9% following the announcement of the collaboration with Chainlink and ANZ Group. The increased trading volume further indicates growing interest in AVAX, with potential challenges ahead at the $60 resistance level.
- AVAX experiences significant price surge
- Challenges expected at $60 resistance level
Hot Take: Transforming Tokenized Asset Settlement
As traditional financial institutions like ANZ embrace blockchain technology through partnerships with innovative platforms like Avalanche and Chainlink, the landscape of tokenized asset settlement is undergoing a transformation. The collaboration showcases the potential for seamless cross-chain transactions and enhanced efficiency in global asset movement and settlement. With promising initial results and plans for further deployment, the initiative could reshape how the financial services industry approaches tokenized assets in the future.
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