Australasian On-Chain Asset Settlement Sees Avalanche and Chainlink Join Forces

ANZ and Chainlink Labs have unveiled the outcomes of their recent collaboration, which sought to connect the Avalanche and Ethereum blockchain networks for on-chain settlement solutions. ANZ utilized Chainlink’s cross-chain interoperability protocol (CCIP) to demonstrate how clients can access, trade, and settle tokenized assets across different networks and currencies seamlessly. The use of CCIP allowed ANZ to simulate the purchase of tokenized assets on the Ethereum network using one stablecoin and settle the transaction on Avalanche using another stablecoin. This initiative revolves around the concept of “Delivery vs. Payment (DvP)” and aims to modernize traditional settlement processes by tokenizing assets and payments on the same blockchain infrastructure, ensuring an atomic and non-intermediated settlement. ANZ’s technology domain lead, Lee Ross, expressed his thoughts on the collaboration. In the simulation, an ANZ customer utilized the bank’s digital asset services portal to acquire a tokenized ANZ-issued New Zealand dollar stablecoin (NZ$DC) via Avalanche. The customer then purchased tokenized Australian nature-based assets issued as NFTs on the Ethereum network, denominated in tokenized ANZ-issued Australian dollar stablecoins (A$DC). ANZ utilized its own Avalanche Evergreen Subnet, Ethereum virtual machine (EVM) compatibility, permissioning, and customized gas token for the project. Anurag Soin, ANZ’s product lead of digital added services, highlighted the convergence of traditional finance and decentralized finance (DeFi) within the tokenized asset ecosystem through the collaboration with Chainlink and Avalanche. ANZ plans to deploy the solution on blockchain mainnets in the future, aiming to revolutionize asset settlement in the financial services industry. In a separate development, Citigroup partnered with Ava Labs in February to conduct a proof-of-concept for tokenizing private equity funds on the Avalanche blockchain.