ANZ and Chainlink Labs have recently announced the results of their collaboration to connect the Avalanche and Ethereum blockchain networks for on-chain settlement solutions. ANZ utilized Chainlink’s cross-chain interoperability protocol (CCIP) to showcase how clients can access, trade, and settle tokenized assets across different networks and currencies seamlessly.
Using CCIP, ANZ simulated the purchase of tokenized assets on the Ethereum network, priced in one stablecoin, with transaction initiation and settlement on Avalanche in another stablecoin. The key focus of this initiative is “Delivery vs. Payment (DvP),” a standard settlement protocol for securities transactions. By tokenizing assets and payments on the same blockchain infrastructure, ANZ aims to modernize traditional DvP processes and ensure secure, direct settlement.
Lee Ross, ANZ’s technology domain lead, commented on the collaboration, stating:
“We are excited to collaborate with Chainlink and explore the potential of blockchain technology for asset settlement. This simulation demonstrates the capabilities of our digital asset services portal and its ability to facilitate seamless cross-chain transactions for our customers.”
In this specific simulation, an ANZ customer used the bank’s digital asset services (DAS) portal to acquire a tokenized ANZ-issued New Zealand dollar stablecoin (NZ$DC) through Avalanche. On the Ethereum network, the customer then purchased tokenized Australian nature-based assets in the form of NFTs, denominated in tokenized ANZ-issued Australian dollar stablecoins (A$DC).
ANZ utilized its own Avalanche Evergreen Subnet, providing Ethereum virtual machine (EVM) compatibility, permissioning, and a customized gas token for the project.
Anurag Soin, ANZ’s product lead of digital added services, emphasized the significance of this collaboration, stating:
“Our partnership with Chainlink and Avalanche highlights the convergence of traditional finance and decentralized finance (DeFi) within the tokenized asset ecosystem. As we continue to progress, we aim to deploy this solution on blockchain mainnets, ushering in a new era of blockchain-enabled asset settlement in the financial services industry.”
This collaboration follows Citigroup’s partnership with Ava Labs in February, where they completed a proof-of-concept for tokenizing private equity funds using the Avalanche blockchain.
ANZ, a leading banking institution serving over 8.5 million retail and institutional customers across nearly 30 markets, aims to further explore blockchain-enabled asset settlement as the project develops.