Blockchain oracle project Chainlink has teamed up with FIX connectivity solutions provider Rapid Addition to create a FIX-native adapter for digital asset trading in institutions. The adapter will be powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which has various applications in token transfers, gaming, and decentralized finance (DeFi). By collaborating with Rapid Addition, Chainlink aims to enable banks and financial institutions to communicate and interact with a wide range of tokenized assets. This partnership presents an untapped market opportunity that could extend to renewable energy products, carbon credits, and real-world assets such as real estate, infrastructure, and collectibles.
Vince Turcotte, Chainlink Labs’ business development lead for Asia Pacific, explained that banks and financial institutions can utilize the adapter in various ways. Similar to Chainlink’s work with the interbank messaging system SWIFT, financial organizations can encode smart contracts with FIX tags and instructions. This information can then be integrated into existing legacy systems, reducing settlement errors and rejection rates. Furthermore, the collaboration between Chainlink and FIX ensures that current risk and execution platforms can seamlessly interact with new blockchain-based asset types.
When considering the impact of the adapter on institutional adoption of blockchain and cryptocurrency, Turcotte anticipates that digitally native institutions will be the early adopters of this integration. He believes that asset managers and their clients can benefit from cost savings by having a single source of truth for settlement instructions that is accessible to all parties involved in a trade and constantly updated 24/7.
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