Avalanche and Chainleek partner with Australian-New Zealand banking group

The Australia and New Zealand Banking Group (ANZ) is moving to blockchain, adopting Chainlink's Cross-Chain Interoperability Protocol (CCIP) to experiment with managing and trading tokenized assets.

Australian and New Zealand banking group ANZ turns to blockchain to tokenize real assets

Explore The Australian and New Zealand Banking Group (ANZ), Australia's third largest banking institution with over 8.5 million customers, is sharing the benefits blockchain technology can bring to its business and customers.

Recently, ANZ used Chainlink's Cross-Chain Interoperability Protocol (CCIP) to conduct experiments on managing, exchanging, and paying for tokenized assets across multiple blockchains. Including Avalanche (AVAX) and Ethereum (ETH).

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By building a tool based on blockchain and CCIP, ANZ aims to modernize the delivery versus payment (DvP) process. It is a mechanism for transferring securities, improving its robustness and making it interoperable with the blockchain.

DvP is a common form of settlement and risk management standard for securities that require payment before or concurrently with delivery. Blockchains and custom smart contract logic provide the ability to modernize legacy DvP operations with tokenized assets and payments on the same infrastructure. Allows atomic, non-intermediate DvP settlement.

The experiment conducted by ANZ involved a simulated transaction. Using the Digital Asset Services (DAS) portal developed by ANZ, the client used a New Zealand dollar-pegged stablecoin (NZ$DC) on the Avalanche blockchain to purchase an Australian dollar-pegged stablecoin (A$DC) on Ethereum . blockchain.

The operation was carried out on a subnet of the Avalanche network that the banking company exploits for its compatibility with the Ethereum Virtual Machine (EVM). As well as its own personalized gas code.

Thus, the first results of this test were very promising according to those responsible for the banking group. This also contributes to the growing interest in coding within traditional financial institutions. Anurag Soin, Director of ANZ, said:

“Avalanche's Evergreen subnets have allowed ANZ to join the list of organizations exploring new use cases and business models while leveraging customizable networks like Avalanche.

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Tokenization of real assets attracts the most important players in the global financial sector

As financial services leaders increasingly look to blockchain, smart contracts and tokenization as a means to improve capital markets infrastructure and institutional workflows, a recent report from SWIFT indicates that 97 % of institutional investors believe tokenization has the potential to revolutionize the financial services industry. .

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Also, the craze for the tokenization of real assets has been felt in other regions of the world. Particularly in the United States with Larry Fink, CEO of BlackRock, who expressed a positive opinion on the tokenization of securities. As well as JP Morgan, which launched its asset tokenization service in October 2023.