Chainlink Dominates Banking and Capital Markets in Q4 2024

As 2024 comes to an end, Chainlink has emerged on top with a string of innovative banking and capital markets announcements, all aimed at supporting the evolution of the global financial ecosystem. 

Showcased throughout Asia, starting with Sibos in Beijing, continuing at Chainlink SmartCon in Hong Kong, and concluding at the Singapore FinTech Festival (SFF), Chainlink presented successful, real-world examples of how blockchain technology and tokenization will support incumbent institutions as they leverage blockchain technologies.

Highlights from Sibos

At Sibos, Chainlink, along with Euroclear, Swift, UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, and Sygnum Bank, launched a blockchain and AI initiative that addresses today’s inefficient corporate action processes by tackling the unstructured data problem in finance. 

Chainlink Co-Founder Sergey Nazarov also unveiled a blockchain privacy suite that helps enable financial institutions maintain data confidentiality, data integrity, and support their compliance needs when transacting across the multi-chain economy.

3 Major MAS Project Guardian Implementations

At SFF, the Monetary Authority of Singapore’s (MAS) Project Guardian showcased three real-world examples powered by Chainlink that demonstrate how financial institutions can harness the potential of tokenization to reimagine financial infrastructure:

1. SBI Digital Markets, UBS Asset Management, and Chainlink successfully completed the implementation of a tokenized fund, showcasing how tokenization, smart contracts, and Chainlink infrastructure can transform fund management operations. 
2. Swift, UBS Asset Management, and Chainlink completed an innovative solution to bridge tokenized assets with existing payment systems. This initiative demonstrates how digital asset transactions could settle with fiat payment systems across more than 11,500 financial institutions in over 200 countries and territories. 
3. To round out the Project Guardian use cases, ADDX, ANZ, and Chainlink introduced a new use case with privacy-enabled cross-chain, cross-border connectivity for tokenized commercial paper.

These use cases showcase how regulated financial entities can securely tokenize and execute digital asset transactions using their existing systems while staying within the regulatory frameworks that ensure the integrity of financial markets. 

Insights from Chainlink SmartCon 

Gathered together at Chainlink SmartCon in Hong Kong, industry leaders came together to explore the convergence of DeFi and TradFi, discussing how blockchain technologies are reshaping the financial landscape and how collaborations between established financial institutions and DeFi builders are unlocking exciting innovations:

• HSBC Global Asset Management, Fidelity International, Franklin Templeton, UBS Asset Management, along with Chainlink Labs, discussed the adoption of tokenized assets and the future of asset management. While Aave Labs, HSBC, SBI Digital Markets, and Chainlink Labs looked at the inevitable convergence of TradFi and DeFi, the explosion of new public and private blockchains, and the key role that interoperability plays in the merging of all these environments into a single unified Internet of Contracts.
• Looking at the future of financial market infrastructure, industry leaders from AsiaNext, Euroclear, SBI Digital Markets, and Chainlink Labs discussed key trends driving the re-platforming of global finance and examined the macro drivers behind the adoption of decentralized technologies in financial markets.

Brazil’s Central Bank Is Using Chainlink in CBDC Project 

Meanwhile, the Central Bank of Brazil (BCB) has selected Banco Inter alongside Microsoft Brazil, 7COMm, and Chainlink to build a trade finance solution as part of the second phase of Brazil’s Drex, Brazilian digital currency’s pilot. The solution leverages blockchain technology and oracles to automate supply chain management and improve trade finance processes. The goal of the pilot is to demonstrate the automated settlement of agricultural commodity transactions across borders, across platforms, and via different currencies.

As the year wraps up, it is clear the interest in Chainlink’s infrastructure is growing with more support from major players across financial services.

Chainlink at Abu Dhabi Finance Week

If you’re heading to Abu Dhabi Finance Week, schedule a meeting with us at the event. If we don’t catch you at the conference, we’d still love to connect—feel free to reach out to one of our experts below.