Leading asset management firms, Australia and New Zealand Banking Group (ANZ), Avalanche, and Chainlink Labs have collaborated to design an initiative that will fast-track the global movement and settlement of tokenized assets. According to an official blog post, the blockchain project connects Avalanche and Ethereum to settle tokenized assets across the two networks in numerous currencies.
More so, the initiative will employ a settlement process known as Delivery vs. Payment (DvP). The DvP is a popular type of settlement and risk-management protocol for securities. This system mandates payment before or at the same time as their delivery. Despite being a traditional settlement system, Chainlink and its partners, through the newly launched project will leverage the support of Ethereum and Avalanche to modernize the DvP legacy.
With the support of the two networks, the partners will modernize the DvP processes allowing assets and payments to be tokenized on the infrastructure. Therefore, enabling atomic and non-intermediated DvP settlement. More so, ANZ will leverage the blockchain interoperability solution of Chainlink and its cross-chain fracture to boost the efficiency of the DvP settlement.
Factors That Initiated the Collaboration Between Chainlink, Avalanche, and ANZ
According to the blog post, ANZ is a leading financial institution that offers banking products and services. Presently, the firm enjoys the patronage of over 8.5 million retail and institutional customers across up to 30 markets. The firm collaborated with Chainlink and Avalanche in a bid to explore the possibilities of on-chain digital assets.
More so, ANZ is one of the financial services leaders that views the blockchain, smart contracts, and tokenization as a way of improving legacy capital markets infrastructure and institutional workflows. Like other institutional investors, the firm believes that tokenization has the power to revolutionize the asset management industry.
Meanwhile, the President of Ava Labs, John Wu provided insights into the initiative. The President described how the project will advance the traditional financial service sector. Furthermore, he added the industry is on the verge of witnessing a new version of capital markets enhanced by blockchain.
Also, John Wu stated that ANZ is pioneering on-chain value transfer that will usher in an exciting future in finance. He further describes how the support of Chainlink and Avalanche will offer interoperability and customizability amid the growing ecosystem of tokenized assets for institutional clients.