Leading blockchain firm, Chainlink has collaborated with Financial Information Exchange (FIX) connectivity solutions service provider Rapid Addition. The firm made the disclosure on Wednesday via a post on X (formerly Twitter). As announced the two firms will partner on developing FIX-native adapter for institutional virtual asset trading.
Furthermore, Chainlink revealed how the solution will be supported by its native Cross-Chain Interoperability Protocol (CCIP). It is worth mentioning that the CCIP is an interoperability protocol that has been adopted by numerous projects focusing on token transfers, gaming, and decentralized finance.
While providing insight into the rationale behind the collaboration, Chainlink explained how the partnership will aid banks and financial institutions to communicate, send messages, and access a wide range of tokenized assets.
Additionally, the firm disclosed that the innovation is a distinguished market opportunity that can be useful for numerous applications. Some of these applications according to Chainlink are renewable energy products, carbon credits, real-world assets (RWAs) like real estate, and infrastructure.
Reaction to the Collaboration by a Top Executive
Meanwhile, Vince Turcotte, the business development lead for Asia Pacific of Chainlink Labs also provided insight into the partnership. In his submission, the executive explained how banks and financial institutions can leverage the adapter for numerous things. He illustrated how financial corporations can use the adapter to encode smart contracts for effective communication.
Also, Turcotte emphasized that the partnership between the two firms will ensure that existing risk and execution outlets will integrate with new blockchain-based assets. The executive said Chainlink expects the adapter to be relevant within the post-trade environment.
He stated that the firm foresees financial institutions to be the first to embrace the innovation. Turcotte exemplified that native institutions will adopt the integration because they know the importance of using the FIX protocol to interact with the TradFi sector. Lastly, he opined that asset managers and their customers can as well cut costs by embracing the adapter.
Side Note on Chainlink
The collaboration with Rapid Addition surfaced shortly after Chainlink joined forces with Avalanche and Australia and New Zealand Banking Group (ANZ) to build a tokenized assets settlement project. According to a report by Binbits, the initiative is targeted at ensuring the swift transfer and settlement of tokenized assets.Â
Binbits reported that the project will adopt a settlement system known as Delivery vs. Payment to enhance the security mechanism of the initiative. In the past, Chainlink has collaborated with numerous firms within and outside the blockchain sphere to introduce solutions that will drive the global adoption of virtual assets. Hence, these efforts have earned the firm a good reputation within and outside the industry.
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