Chainlink and Rapid Addition Collaborate to Boost Institutional Digital Asset Trading
Summary:
Blockchain oracle Chainlink has teamed up with FIX connectivity provider Rapid Addition to develop a FIX-native adapter for institutional digital asset trading. Using Chainlink's Cross-Chain Interoperability Protocol, the partnership allows banks and financial institutions to interact with a wide variety of tokenized assets, from real estate to renewable energy products. The collaboration aims to provide a single source of truth for trade allocations, reducing error rates, integrating legacy systems, and interacting with new blockchain-based asset types.
In a new collaboration, blockchain oracle Chainlink and Financial Information eXchange (FIX) connectivity provider Rapid Addition are set to build a FIX-native adapter, targeted at facilitating institutional digital asset trading. The initiative will use Chainlink's Cross-Chain Interoperability Protocol (CCIP), which supports various applications such as token transfers, gaming and decentralized finance (DeFi).
Through this partnership, financial institutions and banks will be able to communicate and interact with a diverse range of tokenized assets. Chainlink anticipates this undeveloped market could extend to real world assets like real estate, infrastructure, collectibles as well as carbon credits and renewable energy products.
Vince Turcotte, Chainlink Labs' Asia Pacific business development head said that the new adapter opens up numerous avenues for financial institutions, similar to their cooperation with the SWIFT interbank messaging system. Financial organizations will now be able to input smart contracts with FIX instructions and tags.
Turcotte believes this will be particularly advantageous for post-trade dealings, as it offers a single verifiable source for trade allocations which can be parceled out simultaneously and with no duplication to asset managers, brokers, and custodians. This data can then be integrated into existing systems, helping in reducing settlement errors and rejection rates.
The partnership also ensures that current risk and execution platforms can work in sync with innovative blockchain- based asset types. Turcotte anticipates digitally forward institutions to be the pioneering adopters of this integration, appreciating the value of using the FIX protocol to connect with the broader traditional finance ecosystem and the assurance of immutable truth offered by the blockchain.
He further suggested that in terms of costs, asset managers and clients stand to gain from the infrastructure, as it offers constantly updated, 24/7 available single source of truth for settlement instructions to every party to the trade.
Published At
5/1/2024 2:00:00 PM
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