- Chainlink aims to hasten the adoption of proof-of-concepts and pilots by mainstream organizations looking into digital assets.
Chainlink is still pursuing web3 entry through courting traditional financial institutions.
Launched on July 18, Chainlink’s Digital Assets Sandbox (DAS) is a turnkey solution that lets older financial institutions investigate web3 assets.
According to Chainlink, our DAS enables users to quickly initiate cooperative proofs-of-concept and tokenization pilots, accelerating the development of digital assets for mainstream organizations.
According to Kevin Johnson of financial market infrastructure provider Euroclear, the Digital Asset Sandbox gives market participants a secure setting in which fintechs and financial institutions may test new ideas and learn how technology affects operations and business models. Teams can use it to try new things, pick up new skills, and eventually create a compelling business case for investing in their digital asset initiatives.
According to Chainlink, the DAS enables a range of practical asset tokenization use cases in a sandbox setting, including trading operations among several chains, asset collateralization, and bond tokenization. Chainlink Labs will provide DAS users with support and consultancy services.
Institutions may easily access ready-to-use business workflows for digital assets with the DAS, according to Chainlink. This platform can also be used to test out other real-world use cases for digital assets, incorporating a variety of financial instruments across their complete life cycles.
Blooms of tokenization
Chainlink’s most recent attempt to take the lead in the expanding real-world asset tokenization trend is the launch of DAS.
A study conducted in January 2023 by HSBC and Northern Trust predicted that by 2030, five to ten percent of all assets worldwide would be tokenized. Strategy and management consulting firm McKinsey forecast last month that tokenized assets will have a market capitalization of between $2 trillion and $4 trillion by the end of the decade.
Goldman Sachs, one of the top ten US banks, announced earlier this month that it would launch three tokenization projects before year’s end. Since the beginning of 2024, the market value of tokenized US Treasury securities has increased by $1.1 billion, or 140%.
The global head of banking and capital markets at Chainlink Labs, Angela Walker, stated that “we’ve identified a critical need for secure digital asset environments capable of handling blockchain use cases” following numerous talks with top industry players. This need is met by the Chainlink Digital Asset Sandbox, which enables organizations to quickly develop Proofs of Concept in a matter of days.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which permits asset and message transfers across several web3 networks, finished its permissionless implementation in April.
Major companies and organizations experimenting with tokenization, such as Australia and New Zealand Bank (ANZ), Vodafone, Swift, and the U.S. Depository Trust & Clearing Corporation (DTCC), often used CCIP during its permissioned launch period.
According to Dune Analytics, the value of assets moved through CCIP skyrocketed to $177.8 million from a mere $5 million in mid-March.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments
