According to a recent announcement From blockchain platform Avalanche (AVAX), Australia and New Zealand Banking Group (ANZ) has partnered with Chainlink (LINK) Labs to explore the potential of on-chain digital assets for global movement and settlement.
Using Chainlink Cross-chain interoperability protocol (CCIP), the collaboration aims to connect the Avalanche and Ethereum (ETH) blockchains to enable seamless delivery versus payment (DvP) settlement of tokenized assets across multi-currency networks.
Tokenized asset transaction between Avalanche and Ethereum using Chainlink
ANZ, a provider of banking products and services to millions of customers in nearly 30 markets, has reportedly taken an unusual approach to exploring the world of on-chain digital assets.
By leveraging Chainlink’s CCIP, ANZ is validating how customers can access, trade and settle tokenized assets in multiple networks and currencies using Delivery x Payment. This approach aims to improve settlement efficiency and risk management for digital assets that fall under the classification of “securities” and their transactions.
According to Avalanche, Chainlink’s CCIP has been “crucial” in abstracting the complexities of moving tokenized assets across multiple blockchains, ensuring “atomic” cross-chain delivery versus payment settlement.
Notably, within the collaboration, ANZ simulated a transaction where a customer used ANZ’s Digital Asset Services (DAS) portal to purchase tokenized New Zealand Dollar (NZ$DC) stablecoins issued by ANZ on Avalanche.
The client subsequently purchased Australian nature-based tokenized assets issued as non-fungible tokens (NFTs), denominated in Australian dollar (A$DC) tokenized stablecoins issued by ANZ, on Ethereum.
Additionally, ANZ facilitated currency conversion between the two currencies, while CCIP provided the necessary infrastructure to transfer tokens and data between Ethereum and Avalanche.
ANZ leverages Avalanche’s Evergreen subnet
Monday’s announcement also revealed that ANZ used its Avalanche Evergreen subnet for the project, leveraging its Ethereum Virtual Machine (EVM) compatibility, permission and custom gas token features.
Evergreen Subnet has enabled ANZ to explore new use cases and business models using customizable networks like Avalanche.
ANZ’s collaboration with Chainlink and Avalanche shows how traditional financial institutions adopt blockchain technology to improve capital markets.
Ultimately, Avalanche revealed that initial test transaction results were promising and that the initiative could change the way the financial services industry approaches tokenized assets.
Next steps include deploying the solution on blockchain mainnets and extending workflows to include communication between different blockchain networks for different use cases.
AVAX Nears 22-Month High
At the time of writing, Avalanche’s AVAX token is in a constant uptrend, resulting in a notable increase of over 60% in the last 30 days. The token is currently trading at $58.31, just below its 22-month high of $65 set on Monday the 18th.
In the last 24 hours, AVAX experienced a 9% increase following the announcement of collaboration with Chainlink and ANZ Group. This increase allowed the token to surpass the $55 mark resistance level. However, the $60 level is expected to be another obstacle that could lead to a period of consolidation between $55 and $60 if the bullish momentum fades.
Further demonstrating the interest in AVAX, the token’s trading volume in the last 24 hours reached $1,135,122,192, indicating a significant increase of 127.20% compared to the previous day.
Featured image from Shutterstock, chart from TradingView.com
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