Billion dollar banks embrace tokenized assets
- As the adoption of tokenized assets increases among banks and capital markets, Chainlink seeks to strategically serve the billion-dollar market.
- The founder of Chainlink describes the network’s plans to help capital markets freely and efficiently interact with blockchains.
Chainlink taps into a billion-dollar market with its latest move. The Chainlink blockchain has been a hot topic among community members after key figures in the ecosystem highlighted the long-term opportunities and milestones Chainlink could achieve.
Asset tokenization refers to the use of smart contracts and blockchain technology to represent ownership or rights to an asset as a tradable, on-chain token.
As tokenized assets grow in popularity, traditional banks worldwide have begun to embrace the advantages and benefits that come with these assets, and Chainlink is positioning itself as a bridge between tokenized assets and banks.
Now that a number of large banks have discovered the benefits of tokenized assets, they are looking to create more advanced on-chain applications. #Chainlink provides a simple, universal interface for these financial institutions to access Web3.
Discover the role of Chainlink… pic.twitter.com/b33RbtT3QY
— Chainlink (@chainlink) 11 May 2023
Chainlink is a decentralized oracle network that is considered an industry standard Web3 service platform. The network has distinguished itself in the industry as a platform that allows smart contracts to automate the transfer of data between blockchains and external systems in a very secure and reliable way. However, Chainlink intends to make an even bigger impact by addressing the needs of billion-dollar banks.
In particular, it is said that banks want to create more advanced applications on the chain. Chainlink has decided to step in by providing a simple, universal interface that caters to all these financial institutions looking to access the burgeoning Web3 market.
In a recent presentation, Sergey Nazarov, an investor and entrepreneur who is also the founder of Chainlink, describes the network’s long-term goals regarding tokenized assets and traditional banks. According to Nazarov, Chainlink is committed to serving capital markets and banks.
Chainlink’s founder says the project works with billion-dollar banks
Targeting and enabling proper interaction between blockchains in an efficient manner is at the heart of this commitment.
The last thing we do in addition to providing the technology and creating the right incentive alignment without conflicts of interest, secure and hyper-reliable, and we can continue to grow it in a sustainable way and in a prudent way, so that the cost expands with growth that the security provides, and that it continues to provide security on a larger and larger scale, capital market players, namely banks holding trillions of dollars, will continue to use it more and more.
He goes on to make an even bigger case for why the Web3 ecosystem, along with the capital markets, needs a secure connectivity layer, noting that there has been an increase in the creation of stablecoins over the years. Major banks have reportedly created their own stablecoins in the past.
The National Bank of Australia, the Central Bank of Nigeria and the Bank of New Zealand are some of the many banks trying to introduce stablecoins to their customer base. In addition, Russia and Iran are now discussing joint gold-backed stablecoins.
With this, the founder of Chainlink explained that my work between me and Brooklyn Decker’s major banks is to reach out to Netwerk and discuss topics related to building even more advanced applications.
The network also strengthens cooperation with other banks, as it welcomes a larger number of bank customers. Banks are essentially willing to go from a concept stage to a production stage by investing from their trillion dollar revenues.
We have already seen people create stablecoins from banks. Big banks are actually creating their own stablecoins and putting them on chains, and we’ve seen more and more of them start talking to us about building more advanced applications. We’re working with an increasing amount of banks, and some of the things that I’m seeing that they’re suggesting to me that things will go beyond a proof of concept, into a pilot and into production, and just to be clear about what going into in production means the banks have trillions of dollars.
The next step necessary for industry growth, Nazarov added, is for the commitment to come from larger institutional players, although it is expected that propaganda merchants and institutions will take part in the industry as they see fit.
With major players involved, the industry becomes an even more superior system, concludes Nazarov. Finally, chain-link works with some of the largest capital markets to offer even more efficient alternatives among these markets. He claimed;
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So the last thing we do is work with large capital markets institutions to enable them to access these conflict-of-interest-free, reliable and tamper-proof options and offer them to their clients in large volumes and in a very usable way.
In the long run, the adoption of Chainlink from capital markets on lead in traditional banks will skyrocket in the near future.
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