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ADDX and ANZ pilot tokenized commercial papers with Chainlink’s private transaction tech
Cross-border transactions see enhanced privacy with tokenized commercial paper through ADDX, ANZ, and Chainlink partnership.
2 min read
Updated: Nov. 6, 2024 at 5:15 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Private market exchange ADDX, Australia and New Zealand Banking Group (ANZ), and Chainlink have launched an innovative solution for cross-border transactions involving tokenized commercial papers, according to a Nov. 6 statement.
The project utilizes ADDX’s investment platform, ANZ’s Digital Asset Services, and Chainlink’s Cross-Chain Interoperability Protocol (CCIP) with its Private Transactions functionality. It was designed to enable regulatory-compliant digital asset transactions, allowing financial entities to tokenize and conduct these transactions within their existing frameworks.
Commercial paper was chosen for this pilot due to its short-term nature, allowing the entire asset lifecycle — issuance, subscription, settlement, and redemption — to be demonstrated. This setup will enable Australian investors to purchase and redeem tokenized commercial papers on ADDX, a licensed market operator.
Transaction settlement will be managed across private blockchains using Chainlink’s CCIP, and the transaction details will remain confidential across the public CCIP network to meet regulatory requirements.
Chainlink’s CCIP Private Transactions further enhance security, ensuring that private institutional data is inaccessible to external parties. This includes transaction amounts, counterparty details, bid/ask information, and settlement instructions, securing each transaction within the private blockchain.
Inmoo Hwang, ADDX’s Group CFO, noted that the use case simplifies the entire process for tokenized financial assets, from issuance through redemption. He highlighted the pilot’s potential to improve operational efficiency, speed up settlement times, and strengthen cross-border functionality.
Chainlink co-founder Sergey Nazarov echoed the sentiment, adding that the use case marks significant progress for blockchain technology, both in the transaction process and its secure, innovative execution. He stated:
“Privacy of transactions has been a longtime limiting factor in capital markets’ adoption of digital assets and blockchains more generally. With CCIP Private Transactions, we are able to conduct private on-chain transactions in a way that meets the highest level of compliance requirements.”
The project was developed under Singapore’s Monetary Authority (MAS)-led Project Guardian initiative. Project Guardian is a global collaboration between policymakers and key industry players to
enhance the liquidity and efficiency of financial markets through asset tokenization.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
Sergey Nazarov began his career building peer-to-peer marketplaces, going on to the investment team at FirstMark Capital.