Chainlink is tapping into a billion-dollar market with its latest move. The Chainlink blockchain has been a hot topic amongst community members after key figures in the ecosystem highlighted the long-term possibilities and milestones that Chainlink could attain.
Asset tokenization refers to the use of smart contracts and blockchain technology to represent ownership or rights to an asset as a tradable, on-chain token.
As tokenized assets grow in popularity, traditional banks across the world have begun to embrace the advantages and benefits that come with these assets, and Chainlink is positioning itself as a bridge between tokenized assets and banks.
“Now that a number of large banks have discovered the advantages of tokenized assets, they’re looking to create more advanced applications on-chain. #Chainlink provides a single, universal interface for these financial institutions to access Web3.
Discover the role Chainlink… pic.twitter.com/b33RbtT3QY“
— Chainlink (@chainlink) May 11, 2023
Chainlink is a decentralized oracle network that is regarded as an industry-standard Web3 services platform. The network has made its mark in the industry as a platform that allows smart contracts to automate the transfer of data between blockchains and outside systems in a highly secure and reliable manner. However, Chainlink intends to make an even bigger impact by meeting the needs of billion-dollar banks.
Notably, banks are reportedly looking to create more advanced applications on-chain. Chainlink has decided to step in by providing a single, universal interface that caters to all of these financial institutions that are looking to gain access to the budding Web3 market.
In a recent presentation, Sergey Nazarov, an investor, and entrepreneur, who is also the founder of Chainlink, details the network’s long-term goals regarding tokenized assets and traditional banks. According to Nazarov, Chainlink is committed to serving Capital markets and banks.
Chainlink’s founder says the project is working with billion-dollar banks
Targeting and making room for proper interaction between Blockchains in an effective manner is at the core of this commitment.
“The final thing that we are doing in addition to providing the technology and creating proper incentive alignment without conflicts of interest, secure and hyper reliable, and we can continue to grow it in a sustainable way and justifiable way, so that the cost expanded by growth that the security provides, and that it continues to provide security at a larger and larger scale, capital markets participants, namely banks that have trillions of dollars will continue to use it more and more.“
He goes on to make an even bigger case for why the Web3 ecosystem, alongside Capital Markets, needs a secure connectivity layer, by noting that there has been a rise in the creation of stablecoins over the years. Large banks have reportedly created their own stablecoins in previous times.
The National Bank of Australia, the Central Bank of Nigeria, and the Bank of New Zealand are some of the many banks attempting to introduce stablecoins into their customer base. In addition, Russia and Iran are now discussing joint gold-backed stablecoins.
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