Chainlink Labs and Rapid Addition will launch a blockchain adapter for banks

The tool will be based on the CCIP cross-chain protocol

01.05.2024 - 13:15

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3 min

What’s new? The team of the Chainlink decentralized oracle network is developing an adapter for institutional trading of digital assets that will be built into the Financial Information eXchange (FIX) tool from e-commerce solutions provider Rapid Addition. This will allow banks and other financial institutions to interact with a wide range of tokenized assets.

Material by Cointelegraph

What else is known? The adapter will be powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which allows tokens to be moved between public and private banking blockchains and run multi-chain smart contracts, solving the problem of liquidity fragmentation.

CCIP is already used by banks ANZ, BNP Paribas, BNY Mellon, Citi, Lloyds Banking Group and others, and the Chainlink team opened up access to the protocol at the end of April.

According to the parties, the integration can be used in the areas of renewable energy and real world assets (RWAs) such as real estate, infrastructure, and collectibles.

It will provide a single source of reliable trade allocation information that can be used simultaneously by asset managers, brokers, and custodians. This information can also be fed into legacy systems, reducing calculation errors and failures.

Vince Turcotte, head of business development at Chainlink Labs in APAC, explained that asset managers and their clients can reduce costs by having a single source of reliable settlement instructions available to all counterparties to a transaction and constantly updated 24/7. He also revealed that digital-focused institutions will be the first to adopt the new product.

Spanish company Telefónica has entered into a partnership with Chainlink

The goal of the collaboration is to improve the security of the crypto industry, which will ultimately better protect users and their assets

Chainlink’s (LINK) native token ranks 18th in the overall ranking of cryptocurrencies by market capitalization with a figure of $7,6 billion and is trading at $12,91, having lost 2,1% overnight. The drop since the beginning of the year amounted to 13,5%.

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