A recent announcement from Avalanche (AVAX) blockchain platform revealed a strategic partnership between Australia and New Zealand Banking Group (ANZ) and Chainlink (LINK) Labs. This collaboration aims to explore the potential of on-chain digital assets for global movement and settlement.
Utilising Chainlink’s Cross-Chain Interoperability Protocol (CCIP), the partnership seeks to connect the Avalanche and Ethereum blockchains to enable seamless delivery versus payment (DvP) settlement of tokenized assets across networks in various currencies.
ANZ, a leading provider of banking products across nearly 30 markets, is taking an innovative approach to delve into the realm of on-chain digital assets. By leveraging Chainlink’s CCIP, ANZ aims to validate how customers can access, trade, and settle tokenized assets across multiple networks and currencies using Delivery vs. Payment, enhancing settlement efficiency and risk management for digital assets categorised as “securities.”
Avalanche noted that Chainlink’s CCIP plays a crucial role in simplifying the complexities of moving tokenized assets across different blockchains, ensuring atomic cross-chain Delivery vs. Payment settlement.
In a simulated transaction within the collaboration, a customer utilised ANZ’s Digital Asset Services (DAS) portal to purchase tokenized ANZ-issued New Zealand dollar stablecoins (NZ$DC) on Avalanche. Subsequently, the customer acquired tokenized Australian nature-based assets issued as non-fungible tokens (NFTs), denominated in tokenized ANZ-issued Australian dollar stablecoins (A$DC) on Ethereum. ANZ facilitated the FX conversion between the two currencies, while CCIP facilitated the transfer of tokens and data between Ethereum and Avalanche.
Additionally, ANZ leveraged Avalanche’s Evergreen Subnet for the project, benefiting from its Ethereum Virtual Machine (EVM) compatibility, permissioning, and custom gas token features, enabling exploration of new use cases and business models.
The collaboration between ANZ, Chainlink, and Avalanche underscores traditional financial institutions’ embrace of blockchain technology to enhance capital markets. Initial test transaction results were promising, potentially reshaping the financial services industry’s approach to tokenized assets. Future steps include deploying the solution on blockchain mainnets and extending workflows to include communication between different blockchain networks for various use cases.
Following the partnership announcement, AVAX experienced a 9% surge, breaking through the $55 resistance level. Trading volume surged by 127.20% in the last 24 hours, indicating substantial interest in AVAX. Currently trading at $58.31, AVAX approaches its 22-month high of $65, set on Monday, March 18th. However, the $60 level may pose another obstacle, potentially leading to a consolidation period between $55 and $60 if bullish momentum subsides.