The Australia and New Zealand Banking Group (ANZ) has teamed up with Chainlink Labs to pioneer a cross-chain settlement solution that bridges the Avalanche and Ethereum blockchain networks.
This collaboration marks a significant step towards seamless on-chain settlement of tokenized assets across different blockchain ecosystems.
Innovative Cross-Chain Settlement Solutions
Utilizing Chainlink’s Cross-Chain Interoperability Protocol (CCIP), ANZ demonstrated a groundbreaking approach allowing clients to trade and settle tokenized assets in various currencies across the Avalanche and Ethereum networks.
This interoperability solution simulates transactions where assets are purchased on one network and settled on another, showcasing the versatility and efficiency of cross-chain operations.
Revolutionizing Traditional Settlement Processes
The project leverages the “Delivery vs. Payment (DvP)” protocol, a traditional securities transaction settlement method, by tokenizing both assets and payments on the blockchain.
This innovation aims to modernize and streamline DvP processes, ensuring secure and intermediary-free settlements.
Lee Ross, ANZ’s technology domain lead, highlighted Chainlink’s CCIP’s crucial role in simplifying cross-chain token movements and ensuring atomic, cross-chain DvP.
ANZ’s Blockchain Integration
The collaboration involved an ANZ customer using the bank’s Digital Asset Services (DAS) portal to acquire a tokenized New Zealand dollar stablecoin (NZ$DC) through Avalanche.
This customer then proceeded to purchase tokenized Australian nature-based assets, denominated in ANZ-issued Australian dollar stablecoins (A$DC), on the Ethereum network.
For this initiative, ANZ leveraged its Avalanche Evergreen Subnet, benefiting from Ethereum Virtual Machine (EVM) compatibility and customized gas token solutions.
Future Prospects and Industry Implications
Anurag Soin, ANZ’s digital added services product lead, expressed enthusiasm for further exploring blockchain, smart contracts, and tokenization to enhance global financial system infrastructure.
This partnership not only signifies the merging paths of traditional and decentralized finance but also positions ANZ, Chainlink, and Avalanche at the forefront of innovative asset settlement solutions.
As the collaboration aims to implement this solution on blockchain mainnets, ANZ’s venture into cross-chain settlements heralds a new era in financial services, promising increased efficiency, security, and interoperability for the tokenized asset marketplace.
This initiative also aligns with broader industry trends, as evidenced by Citigroup’s recent partnership with Ava Labs for tokenizing private equity funds on the Avalanche blockchain, further underscoring the growing integration of blockchain technology in traditional financial operations.
