Avalanche and Chainlink Partners with ANZ to Tokenize On-Chain Settlement

Avalanche and Chainlink Partners with ANZ to Tokenize On-Chain Settlement

In an official publication, Australia and New Zealand Banking Group (ANZ) issued a report showcasing the progress of the Avalanche and Ethereum networks in integrating the bank’s on-chain settlement options. To support the proposed integration of Ethereum and Avalanche networks, the ANZ bank collaborated with Chainlink Labs.

Under the partnership agreement, the Chainlink team allowed the ANZ to use its proprietary tools, including the cross-chain interoperability protocol (CCIP), which will support the customers in accessing the on-chain settlement platform.

ANZ Partners with Chainlink Labs

The integration of CCIP on the ANZ will enable the customers to buy and sell tokenized assets across multiple networks using different currencies. In the report, the ANZ confirmed that the Chainlink CCIP technology will support the bank in offering tokenized assets on the Ethereum network priced at one stablecoin.

On the other hand, the transaction and settlement process will take place on the Avalanche network. The integration of Avalanche and Ethereum to process on-chain settlement is based on the concepts of delivery vs. payment (DvP), the standard unit of settlement protocol for securities transaction.

This development aimed to enable the ADZ to modernize the conventional DvP processes and eliminate third parties in settlement through tokenizing assets on the blockchain network.

A statement conveyed by the domain lead expert at ANZ, Lee Ross, explained that the integration of Chain Link CCIP played a critical role in enabling the tokenization of assets across multiple blockchain networks. He admitted that the blockchain complexities had hindered the tokenization of assets across various chains.

Benefits of Tokenization of Assets

The official believes that the CCIP integration will support cross-chain DvP. The developers engaged in multiple trials during the integration of Avalanche and Ethereum on the ANZCIU platform.

The team behind the integration tested tokenized ANZ backed by the New Zealand dollar stablecoin (NZ$DC) on the Avalanche network. The trial allowed the ANZ users to access the tokenized assets through their respective digital asset service portal (DAS).

The developers confirmed the acquisition of tokenized Australian assets issued as nonfungible tokens (NFTs) and other tokenized assets backed in Australian dollar stablecoin (A$DC).

At the preliminary development stages, the ANZ leveraged Avalanche Evergreen Subnet to boost compatibility and improve the Ethereum virtual machine’s (EVM) permission.

ANZ Plans to Offer Blockchain-Powered Financial Services

A report from the product lead for digital added services at ANZ, Anurag Soin, expressed his optimism that banks will continue integrating blockchain, smart contracts, and tokenization technology to improve the global financial system.

The executive stated that ANZ demonstrated its commitment to supporting the marriage of traditional and decentralized finance (DeFI) using tokenized assets. He believes the partnership with Chainlink and Avalanche will support the ANZ to offer world-class services to diverse users.

A review of the ANZ website demonstrated that the bank has around 8.5 million active users in the retail and institutional sectors. Currently, ANZ has established a strong footprint in 30 markets.

The bank plans to provide blockchain solutions along with its exclusive financial services. The ANZ vows to push for blockchain-powered asset settlement in the vibrant economic sector.

The ANZ development mirrors the significant move made by fast-paced banks to converge blockchain in the financial sector. A few months ago, Citigroup entered into a strategic partnership with Ava Labs to tokenize private equity funds across the Avalanche network.

Editorial credit: ArDanMe / Shutterstock.com

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