The Australia and New Zealand Banking Group (ANZ) in partnership with Chainlink Labs has made public the outcomes of a recent initiative to establish a connection between the Ethereum and Avalanche blockchain networks for on-chain settlement solutions.
ANZ demonstrated how clients would be able to access, trade, and settle tokenized assets across networks in different currencies with ease by using the cross-chain interoperability protocol (CCIP), an interoperability solution offered by Chainlink.
By using CCIP, ANZ replicated the Ethereum network’s tokenized asset acquisition at a price expressed in a single stablecoin, with transaction initiation and settlement taking place on Avalanche in a different stablecoin.
The idea of “Delivery vs. Payment (DvP)”—a typical settlement process for securities transactions—is at the heart of this project. An atomic, non-intermediated settlement and the modernization of conventional DvP procedures might be achieved by ANZ through the tokenization of assets and payments on the same blockchain infrastructure.
The ANZ technology domain head, Lee Ross, made the following remarks about the partnership:
“Chainlink’s CCIP played a key role in abstracting away the blockchain complexity of moving tokenized assets across different chains and ensuring atomic cross-chain DvP.”
In this particular instance, an ANZ customer obtained a tokenized New Zealand dollar stablecoin (NZ$DC) issued by ANZ using Avalanche, the bank’s digital asset services (DAS) platform.
It then bought tokenized Australian nature-based assets created as NFTs on the Ethereum network, with the tokenized Australian dollar stablecoins (A$DC) issued by ANZ as the unit of account.
The statement states that for its permissioning, bespoke gas token, and Ethereum virtual machine (EVM) compatibility, ANZ deployed its own Avalanche Evergreen Subnet.
Anurag Soin, the product lead of digital added services at ANZ said.
“We look forward to continuing to test how blockchain, smart contracts, and tokenization can improve the rails of the global financial system.”
In the tokenized asset ecosystem, ANZ’s partnership with Chainlink and Avalanche demonstrates the ongoing convergence of traditional finance and decentralized finance (DeFi). In almost 30 markets, it serves over 8.5 million retail and institutional clients with banking services.
As the project moves forward, ANZ stated that it wants to push for a new age of asset settlement in the financial services sector by deploying the solution on blockchain mainnets.
Ava Labs, the company behind the Avalanche network, and Citigroup, an American investment bank and financial services provider, collaborated in February to finish a proof-of-concept for tokenizing private equity funds using the Avalanche blockchain.