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- Using Chainlink CCIP, ANZ Australia Carrie’s lit a cross-China purchase of tokenized assets using the ASDC stablecoin.
- The future of tokenization is promising, as the technology is poised to revolutionize the banking system, ANZ asserts.
In a recent announcement, Chainlink has shared that ANZ Australia, one of the largest institutional banks in Australia utilized Chainlink CCIP to carry out a significant action. According to the report, Chainlink CCIP was utilized by ANZ, to carry out a cross-China purchase of tokenized assets with ASDC, an ANZ-issued stablecoin of the Australian Dollar.
In a follow-up post, Chainlink describes the new development as one that builds upon the recent action taken by the SWIFT network. Summarily, it depicts the pattern that leading finance platforms can utilize CCIP and facilitate cross-chain transactions within different types of blockchain networks. Chainlink wrote.
“This new development builds on the lessons learned from the recent Swift blockchain interoperability initiative and further showcases how financial institutions can utilize CCIP to facilitate cross-chain transactions across public and private blockchains.”
.@ANZ_AU, one of the largest institutional banks in Australia, used Chainlink #CCIP to successfully demonstrate a cross-chain purchase of tokenized assets with A$DC, an ANZ-issued stablecoin of the Australian Dollar: https://t.co/l9iPE2JuWD
— Chainlink (@chainlink) September 14, 2023
Cross-chain lending, also known as CCIP, is a platform that allows its users to lend and borrow a wide range of digital assets across a handful of DeFi platforms running on different independent chains.
CCIP also enables users to transfer tokens from one blockchain to another, using the lock-and-mint or burn-and-mint mechanisms, while attaching arbitrary data commands.
ANZ Australia is a platform associated with New Zealand Banking Group Limited (ANZ), both of which are an Australian multinational banking and financial services company headquartered in Melbourne, Victoria.
Tokenization will revolutionize the banking system, ANZ Australia says
In an official post made by ANZ Australia, the banking platform noted that tokenized assets are already changing the way banking works. Despite the increased levels of adoption at this time, the technology still has the potential to do much more but this can only happen “if the right pieces can come together.”
As ANZ explains, a lot of banks are exploiting different use cases involving tokenized assets. According to a recent report by EY, as much as 93% of institutional investors believe in the long-term value of this technology.
However, the technology is still very highly fragmented, ANZ added, saying that assets and services siloed across different blockchain platforms do not always immediately work together.
The bank affirms that it sees the real value in what could be achieved using tokenized assets while citing conversations with its customers as another supporting factor to this claim. As such, ANZ is committed to exploiting the use of decentralized networks through a ‘test-and-learn’ approach.
As ANZ further explains;
Building on the lessons learned from the Swift initiative, ANZ recently worked with Chainlink CCIP to complete a test transaction to simulate the purchase of a tokenised asset, facilitated using A$DC and an ANZ-issued NZ-dollar-denominated stablecoin. This transaction involved technical integration of ANZ’s digital asset services technology stack with CCIP to realise cross-chain settlement of tokenised assets securely and efficiently.
The adoption of digital assets will enhance the proliferation of multiple assets across different blockchains
Currently, ANZ’s work with the ASDC stablecoin and the tokenization of real-world assets has armed it with substantial lessons, while it proceeds to explore enterprise-grade use cases.
In the long term, ANZ expects digital assets to continue to gain adoption according to ongoing market activities. The adoption of these assets will further the proliferation of multiple assets across different blockchain networks.
ANZ remains at the forefront of this collaborative innovation and continues to work with industry partners and technology providers to explore the many ways they can collectively facilitate interoperability.
Connecting existing blockchain networks remains cortical for expanding the adoption rates of digital assets, along with the benefits they can provide, ANZ added.
