Chainlink, a blockchain oracle project, has joined forces with Rapid Addition, a FIX connectivity solutions provider, to create a FIX-native adapter for institutional digital asset trading. This adapter will be powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which has various use cases in token transfers, gaming, and decentralized finance (DeFi).
By collaborating with Rapid Addition, Chainlink aims to enable banks and financial institutions to communicate and interact with a wide range of tokenized assets. The organization sees this as an untapped market opportunity that could be applied to renewable energy products, carbon credits, and real-world assets such as real estate, infrastructure, and collectibles.
Vince Turcotte, Chainlink Labs’ business development lead for Asia Pacific, explained that banks and financial institutions can leverage the adapter to perform various tasks, similar to Chainlink’s work with the interbank messaging system SWIFT. Turcotte highlighted that financial organizations can encode smart contracts with FIX tags and instructions, which can then be integrated into existing legacy systems. This integration reduces settlement errors and rejection rates while ensuring that risk and execution platforms can work seamlessly with new blockchain-based asset types.
When asked about the impact of the new adapter on institutional adoption of blockchain and cryptocurrency, Turcotte expects digitally native institutions to be the first to embrace the integration. He believes that asset managers and their clients can benefit from cost savings by having a single source of truth for settlement instructions that is accessible to all counterparties and constantly updated 24/7.
In related news, Chainlink has emphasized the importance of integrating real-world data into tokenization, signaling the next phase in the development of this technology. The collaboration between Chainlink and FIX is a step towards achieving this goal.
As the industry progresses, Turcotte predicts that web3 gaming will not exist in five years. Additionally, a crypto game pitch competition is offering a prize of $656,000 for the best idea.