Today, Singapore-based investment platform ADDX, Australia and New Zealand Banking Group (ANZ), and Chainlink announced an end-to-end solution for streamlining the life cycle of tokenized commercial paper while maintaining transaction confidentiality and meeting regulatory requirements.
The use case was introduced under the Monetary Authority of Singapore’s Project Guardian – a multi-year collaboration between policymakers and the financial industry to enhance financial markets’ liquidity and efficiency through asset tokenization – and leverages ADDX’s investment platform, ANZ’s digital asset services, and Chainlink’s Cross-Chain Interoperability Protocol (CCIP) including its new privacy capabilities.
Launched last month at Sibos, CCIP Private Transactions employs a novel onchain encryption and decryption protocol that allows institutions to interact with multiple private and public chains while defining conditions that permit authorized parties to verify certain data for compliance but keep that same data private from all unauthorized third parties and adversaries.
One of the largest banks in the Asia-Pacific region with over 1.1 trillion AUD in assets, ANZ is the first major institution to pilot CCIP Private Transactions for cross-chain settlement of tokenized real-world assets (RWAs). Previously, ANZ partnered with Chainlink Labs and ADDX to promote the exchange of RWAs such as commercial paper – a short-term, unsecured debt instrument typically issued by corporations.
Commercial paper was selected for this latest use case because its entire life cycle could be highlighted within a single pilot designed to show how regulated financial entities can securely tokenize and execute digital asset transactions using their existing systems, while staying within the necessary regulatory frameworks.
The use case demonstrates how an Australian-based investor can purchase and redeem tokenized commercial paper issued on the platform of a licensed, recognized Singaporean market operator, such as ADDX. CCIP Private Transactions prevents third parties from accessing confidential information, even as tokenized assets use the public CCIP network to move between two private, permissioned blockchains.
As the industry standard for cross-chain digital asset and data transfer, CCIP leverages Chainlink’s industry-leading, battle-tested decentralized oracle network, which has enabled over $16 trillion in transaction value across 19+ blockchain networks, to achieve the highest level of cross-chain security.
“By leveraging Chainlink CCIP for secure and compliant blockchain interoperability, this use case showcases the utility of tokenized financial assets within a regulated environment,” said Inmoo Hwang, co-founder and Group CFO at ADDX.
“While we see significant potential for blockchain technologies to streamline the entire asset lifecycle, transaction confidentiality and meeting compliance obligations remain paramount,” said Richard Schroder, Head of Digital Asset Services at ANZ. “We look forward to exploring the privacy-preserving capabilities of Chainlink CCIP to support our customers with end-to-end private transactions.”
Chainlink co-founder Sergey Nazarov praised the pilot’s breakthrough in private transactions, which have been one of the biggest obstacles preventing blockchain and digital asset adoption in capital markets.
“The Chainlink use case for tokenized commercial paper with ANZ and ADDX is a huge step forward for the blockchain industry, both in terms of the transaction itself and in the unique private manner in which it was conducted,” he said.
“With CCIP Private Transactions, we are able to conduct private onchain transactions in a way that meets the highest level of compliance requirements.”