The Australia and New Zealand Banking Group (ANZ), in collaboration with Chainlink, has unveiled the results of an initiative aimed at bridging the gap between Avalanche and Ethereum for global asset settlement.

Exploring Cross-Chain Interoperability

In a recent announcement posted on X, ANZ, and Chainlink showcased the outcomes of their collaboration, which focused on utilizing the Cross-Chain Interoperability Protocol (CCIP) to facilitate the settlement of tokenized assets across disparate blockchain networks.

The joint effort between the banking group and Chainlink aims to showcase the possibility of accessing, trading, and settling tokenized assets across various networks and currencies using Delivery vs. Payment (DvP).

The goal was to demonstrate, in a testnet environment using @chainlink‘s Cross-Chain Interoperability Protocol (CCIP), how clients could access, trade, and seamlessly settle tokenized assets across different networks, in different currencies.

— Avalanche (@avax) March 18, 2024

This settlement method, typical in traditional trading systems, was replicated on-chain to illustrate the potential for blockchain technology to upgrade outdated infrastructure.

When the process was subjected to a testnet environment, two significant outcomes emerged. Initially, ANZ clients engaged with the bank’s Digital Asset Services platform to acquire tokenized ANZ-issued New Zealand dollar stablecoin (NZ$DC) on Avalanche.

Next, customers obtained tokenized assets representing Australian natural resources, which were issued as Non-Fungible Tokens (NFTs) and valued in tokenized Australian dollar stablecoin (A$DC) issued by ANZ, all within the Ethereum network.

Last year, Avalanche experienced a bullish trend after forming a partnership with Amazon Web Services (AWS), which aims to enhance blockchain adoption among enterprises, institutions, and governments, thus bolstering the network’s robustness and flexibility for developers. Analysts are keen on seeing the impact of this recent collaboration on market sentiments.

Leveraging The Avalanche Subnet Tech

Anurag Soin, Product Lead for Digital Added Services at ANZ, emphasized the importance of Avalanche’s Evergreen Subnets in empowering institutions such as ANZ to explore novel applications and commercial strategies. The adaptable structure of Avalanche’s networks was instrumental in facilitating the implementation of this cross-chain settlement endeavor.

Analysts anticipate that the ANZ initiative’s triumph will spur growth in the tokenization and Decentralized Finance (DeFi) ecosystem within Avalanche. As the next phase targets deploying the solution on mainnet, ANZ and Chainlink will probably broaden their workflows to facilitate communication among blockchain networks for diverse use cases.

Meanwhile, Avalanche has experienced a weekly surge of 22% and is anticipated to hit the $71 threshold by the final quarter of this year. Currently priced for $62.91 atop a 24-hour surge of 13%, Avalanche traders are showcasing trust for the coin per its growing adaptability in TradFi setting.

The post Avalanche (AVAX) Tokenization Potentials Showcased By ANZ appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am