Australia’s ANZ Bank has allied with the Monetary Authority of Singapore, Chainlink Labs, and ADDX to advance the exploration of tokenized assets and enhance blockchain interoperability.
As the first Australian bank to join Project Guardian, initiated by the Monetary Authority of Singapore, ANZ Bank is set to explore how real-world assets can be tokenized on blockchain networks. This initiative signifies a pivotal move for one of Australia’s “Big Four” banks.
This collaboration enables ANZ to partner with Chainlink Labs and ADDX in testing the exchange of tokenized assets like commercial paper across private blockchains.
ANZ has integrated Chainlink’s cross-chain interoperability protocol to simulate the purchase of tokenized assets, building on insights from a blockchain interoperability project initiated earlier this year.
Tokenization transforms traditional assets, such as money market funds, into digital tokens compatible with blockchain platforms, facilitating their trade similar to stocks and cryptocurrencies.
With this initiative, ANZ aims to evaluate whether digital representations of real-world assets can be transferred more efficiently and securely between various blockchain networks, ultimately enhancing the flow of money and goods across the Asia-Pacific region.
Interoperability
Tokenized assets frequently encounter interoperability challenges, where different blockchains struggle to communicate with one another. This lack of interoperability hampers the tokenization process, often resulting in isolated networks.
ANZ intends to leverage its experience with digital assets, including its Australian Dollar stablecoin, to assist customers in navigating the rapidly evolving landscape of digital finance.
Project Guardian, launched in 2022, aims to foster collaboration between regulatory bodies and the financial sector to improve liquidity and efficiency in financial markets through the adoption of tokenization.
