Under the Monetary Authority of Singapore’s (MAS) Project Guardian, ADDX, ANZ, and Chainlink have collaborated on a new use case to tokenize commercial paper for cross-border transactions. This innovative pilot integrates ADDX’s investment platform with ANZ’s Digital Asset Services.
We’re excited to announce a new cross-chain, cross-border solution with @ANZ_AU, @ADDXco, & #Chainlink under @MAS_sg’s Project Guardian.
The solution shows how CCIP Private Transactions unlock privacy-enabled cross-chain, cross-border connectivity for tokenized commercial paper.
— Chainlink (@chainlink) November 6, 2024
It also uses Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to demonstrate secure digital asset transactions across borders. The short duration of commercial paper as an asset class allows the project to show the complete lifecycle of these tokenized assets, from issuance and subscription to settlement and redemption.
Chainlink Ensures Privacy in Cross-Border Tokenized Transactions
The following initiative outlines how a regulated Australian investor is capable of buying/tokenizing, and selling this tokenized commercial paper on ADDX, a licensed market operator in Singapore. Chainlink’s CCIP helps with the process by allowing for a safe and effective settlement across two private, permissioned blockchains. With the help of its Private Transactions feature, Chainlink guarantees that counterparty and settlement details are safeguarded while the results are accessible through a public network.
Chainlink’s CCIP Private Transactions offers privacy solutions for institutional clients while protecting their transaction data. This capability enables regulated entities to perform transactions that are key to the capital market without compromising individuals’ information, which is a major issue in applying blockchain technology to capital markets. Transaction details such as amounts and information on bid/ask are guarded to ensure that the transaction is legal and private.
Enhanced Operational Efficiency and Market Integration
Inmoo Hwang, the Co-Founder and CFO at ADDX, stated that the pilot aimed to improve operational efficiency, reduce settlement times, and enhance regulated cross-border transactions. Richard Schroder, ANZ’s Head of Digital Asset Services also shared his remarks, emphasizing the blockchain’s potential to streamline asset lifecycles while maintaining compliance.
Chainlink’s Sergey Nazarov noted that achieving transaction privacy and compliance could further blockchain’s adoption in regulated financial markets. This pilot marks a significant development in blockchain-based asset markets, providing a practical solution for private, compliant cross-border transactions. It aligns with Project Guardian’s goals of enhancing market liquidity and operational efficiency through asset tokenization while adhering to stringent regulatory standards.