Avalanche and Chainlink collaborate on Australasian on-chain asset settlement
The Australia and New Zealand Banking Group (ANZ) and Chainlink Labs have released the results of a recent collaboration that aimed to connect the Avalanche and Ethereum blockchain networks for on-chain settlement solutions.
ANZ used an interoperability solution provided by Chainlink called the cross-chain interoperability protocol (CCIP), which allowed it to demonstrate how clients will be able to access, trade, and seamlessly settle tokenized assets across networks in different currencies.
Through CCIP ANZ simulated the purchase of tokenized assets on the Ethereum network at a price denominated in one stablecoin, with transaction initiation and settlement occurring on Avalanche in another stablecoin.
Central to this initiative is the concept of “Delivery vs. Payment (DvP)” — a standard settlement protocol for securities transactions. By tokenizing assets and payments on the same blockchain infrastructure, ANZ could potentially modernize traditional DvP processes, and ensure an atomic, non-intermediated settlement.
Lee Ross, the technology domain lead at ANZ, commented on the collaboration saying:
"Chainlink’s CCIP played a key role in abstracting away the blockchain complexity of moving tokenized assets across different chains and ensuring atomic cross-chain DvP.”
This specific simulation had an ANZ customer using the bank’s digital asset services (DAS) portal to obtain a tokenized ANZ-issued New Zealand dollar stablecoin (NZ$DC) via Avalanche.
On the Ethereum network, it then purchased tokenized Australian nature-based assets issued as NFTs and denominated in tokenized ANZ-issued Australian dollar stablecoins (A$DC)
According to the announcement, ANZ used its own Avalanche Evergreen Subnet for its Ethereum virtual machine (EVM) compatibility, permissioning and customized gas token.
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Anurag Soin, the product lead of digital added services at ANZ said:
“We look forward to continuing to test how blockchain, smart contracts, and tokenization can improve the rails of the global financial system."
ANZ's collaboration with Chainlink and Avalanche highlights the continuing convergence of traditional finance and decentralized finance (DeFi) within the tokenized asset ecosystem. It provides banking services to more than 8.5 million retail and institutional customers across nearly 30 markets.
As the project progresses, ANZ said it aims to deploy the solution on blockchain mainnets, pushing for a new era of blockchain-enabled asset settlement in the financial services industry.
In February, the American investment bank and financial services provider Citigroup partnered with Ava Labs -—the developer of the Avalanche network — to complete a proof-of-concept for tokenizing private equity funds via the Avalanche blockchain.
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