Avalanche partners with Chainlink for Australian on-chain asset settlement

Author: Savannah Fortis, CoinTelegraph; Compiled by: Deng Tong, Golden Finance

Australia and New Zealand Banking Group (ANZ) and Chainlink Labs released the results of their recent collaboration aimed at connecting Avalanche and the Ethereum area Blockchain network to provide on-chain settlement solutions.

ANZ uses an interoperability solution called the Cross-Chain Interoperability Protocol (CCIP) provided by Chainlink solution that enables it to demonstrate how customers can access, trade and seamlessly settle tokenized assets across the network in different currencies.

Through CCIP, ANZ simulates the price denominated in a stablecoin in Tokenized assets are purchased on the Ethereum network and transactions are initiated and settled on Avalanche denominated in another stablecoin.

The core of this initiative is "Deposit versus payment (DvP)< /span>” concept – a standard settlement agreement for securities transactions. By tokenizing assets and payments on the same blockchain infrastructure, ANZ has the potential to modernize traditional DvP processes and ensure unintermediated settlement.

Lee Ross, head of technology at ANZ, commented on the collaboration:

“Chainlink’s CCIP is a great addition to removing the blockchain complexity of moving tokenized assets across different chains and ensuring Cross-chain DvP plays a key role."

In this particular simulation, ANZ clients used the bank's Digital Asset Services (DAS) portal to access ANZ-issued tokenized New Zealand dollar stablecoins through Avalanche (NZ$DC).

It then purchased a tokenized Australian natural asset issued as an NFT on the Ethereum network and denominated in a tokenized Australian dollar stablecoin (A$DC) issued by ANZ Bank.

According to the announcement, ANZ uses its own Avalanche Evergreen subnet for Ethereum Virtual Machine (EVM) compatibility , licensing and customizing Gas tokens.

Anurag Soin, head of digital add-on products at ANZ, said:

“We look forward to continuing to test blockchain, smart contracts and tokenization How to improve the trajectory of the global financial system.”

ANZ’s partnership with Chainlink and Avalanche highlights the continued convergence of traditional finance and decentralized finance (DeFi) in the tokenized asset ecosystem. It provides banking services to more than 8.5 million retail and institutional customers in nearly 30 markets.

As the project progresses, ANZ stated that its goal is to deploy the solution on the blockchain mainnet and promote the financial services industry to open a new era of blockchain asset settlement.

In February this year, U.S. 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.