- ANZ and Chainlink teamed up to connect Ethereum and Avalanche blockchains for seamless asset settlement.
- The collaboration aims to modernize traditional settlement processes using blockchain technology
In a recent blog, the Australia and New Zealand Banking Group (ANZ) has joined forces with Chainlink Labs to explore seamless cross-chain settlement solutions. This collaboration aims to bridge the gap between the Avalanche and Ethereum blockchain networks, facilitating efficient on-chain settlement processes for tokenized assets.
Avalanche announces collaboration with Chainlink and Australia and New Zealand Banking Group to explore on-chain asset settlement. The cooperation aims to connect the Avalanche network with Ethereum to enable the circulation and settlement of tokenized assets globally.…
— Wu Blockchain (@WuBlockchain) March 25, 2024
Empowering Institutional Investors
The project was launched at a time when executives in the financial services industry are beginning to realize how revolutionary blockchain, smart contracts, and tokenization may be in redefining the infrastructure of established capital markets. A recent SWIFT report revealed that 97% of institutional investors believe tokenization is key to reshaping the asset management industry. The strategic choice by ANZ to engage with Chainlink highlights how blockchain technology may improve institutional workflows and increase efficiency within the asset management ecosystem.
ANZ leveraged Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to demonstrate how clients can access, trade, and settle tokenized assets across different blockchain networks and currencies. Through the use of CCIP, ANZ launched transactions and settled them on Avalanche, simulating the acquisition of tokenized assets on the Ethereum network. With the help of this interoperability solution, traditional Delivery vs. Payment (DvP) protocols may be modernized while guaranteeing atomic cross-chain settlement and abstracting blockchain issues.
One of the key highlights of the collaboration is the successful simulation of a tokenized asset purchase transaction spanning multiple blockchain networks. ANZ’s Digital Asset Services (DAS) portal facilitated the seamless purchase of tokenized assets on Ethereum and Avalanche, denominated in stablecoins.
Through ANZ’s innovative approach, clients were able to initiate and settle transactions in different currencies, showcasing the potential of blockchain to streamline cross-border asset movements. Additionally, ANZ’s deployment of its Avalanche Evergreen Subnet with Ethereum Virtual Machine (EVM) compatibility underscores its commitment to advancing blockchain innovation.
Pushing the Boundaries of Blockchain-Enabled Asset Settlement
ANZ’s utilization of Avalanche’s Evergreen Subnets underscores its commitment to fostering innovation in blockchain and digital asset strategies. By leveraging Avalanche’s customizable blockchain environments, ANZ aims to explore new use cases and business models while benefiting from intranetwork interoperability. The collaboration with Chainlink and Avalanche exemplifies ANZ’s dedication to embracing blockchain technology to enhance the global financial system’s rails.
During the pilot phase, ANZ executed a simulated purchase of tokenized assets on the Ethereum network, denominated in one stablecoin. Transaction initiation and settlement occurred on the Avalanche blockchain, utilizing a different stablecoin. Additionally, this innovative approach showcased the practicality and efficiency of cross-chain interoperability in facilitating asset transfers on a global scale.
ANZ’s collaboration with Chainlink and Avalanche signifies a convergence of traditional and decentralized finance (DeFi) within the tokenized asset ecosystem. With a clientele spanning over 8.5 million retail and institutional customers across nearly 30 markets, ANZ aims to deploy blockchain-enabled asset settlement solutions on mainnets. This initiative heralds a new era in the financial services industry, poised to revolutionize asset settlement processes through blockchain technology.
Market Response
Following the announcement of this successful collaboration, Avalanche’s native token, AVAX, experienced a notable surge, jumping by 9% to $58.12. This positive market response underscores the significance of blockchain interoperability initiatives and highlights investor confidence in Avalanche’s ecosystem.
