DeFi
Sergey Nazarov Says World’s Largest Asset Managers and Banks Will Connect to Chainlink-Powered DeFi Protocols
Chainlink creator Sergey Nazarov claims that the world of traditional finance (TradFi) will be connected to decentralized finance (DeFi) via LINK.
Nazarov said on social media platform X that TradFi is preparing to take the next big step in its adoption of digital assets and smart contracts.
“Accelerating the adoption of digital assets/smart contracts in TradFi is just the beginning. Once the world’s largest asset managers and banks are on-chain, the next step will be to connect them to the DeFi protocols already powered by Chainlink.”
Once there is a single standard for how transactions work properly across multiple chains and across both the worlds of DeFi and TradFi, we will then enter a global Internet of Contracts, the true promise of what our industry has been working towards.”
Nazarov is referring to the launch of Chainlink’s Digital Assets Sandbox (DAS), built by Chainlink Labs and powered by its Cross-Chain Interoperability Protocol (CCIP).
The Chainlink DAS aims to “accelerate digital asset innovation within financial institutions” by giving them access to “ready-to-use business workflows for digital assets.”
According to Chainlink LabsAs an example, institutions can now use DAS on multiple blockchain testnets to digitize a traditional bond by converting it into digital tokens and allowing the tokens to be traded and settled on a delivery versus payment basis – as well as many other real-world examples.
Kevin Johnson, head of the innovation competence centre at global settlement company Euroclear, said:
“A digital asset sandbox provides market participants with a safe environment in which financial institutions and fintechs can experiment and understand how technology impacts operational and business models. It gives teams the opportunity to experiment, learn, and ultimately build a strong business case for investing in their digital asset strategies.”
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Featured image: Shutterstock/Relight Motion