Grayscale Positions Chainlink as the Essential Link in Tokenized Finance
Grayscale highlights Chainlink's pivotal role in advancing blockchain technology and integration with traditional finance.
Grayscale Positions Chainlink as the Essential Link in Tokenized Finance
Grayscale asserts that Chainlink is pivotal for the next stage in blockchain adoption, dubbing it the “critical connective tissue” between cryptocurrency and traditional finance.
In its latest research report, Grayscale argues that Chainlink’s (LINK) expanding array of software tools is becoming an essential framework for tokenization, facilitating cross-chain settlements, and integrating real-world assets with blockchain technology.
“A more accurate description of Chainlink today would be modular middleware that lets on-chain applications safely use off-chain data, interact across blockchains, and meet enterprise-grade compliance needs,” Grayscale wrote.
“Una descripción más precisa de Chainlink hoy sería middleware modular que permite a las aplicaciones en cadena usar de manera segura datos fuera de cadena, interactuar entre cadenas y cumplir con las necesidades de cumplimiento de grado empresarial.”
Grayscale further noted that Chainlink’s growing significance has allowed LINK to become the largest non-layer 1 cryptocurrency by market cap (excluding stablecoins), offering investors access to varied ecosystems instead of being limited to a single blockchain.
Chainlink to Drive the Tokenization Expansion
According to Grayscale, the path toward tokenization showcases Chainlink’s tangible value. Presently, most financial assets, including stocks and real estate, are still maintained on off-chain records. To leverage the benefits of blockchain’s efficiency and programmability, these assets need to be tokenized, authenticated, and linked to external data sources.
“We expect Chainlink to play a central role orchestrating the process of tokenization, and it has announced a variety of partnerships, including with S&P Global and FTSE/Russel, that should help it do so,” the asset manager wrote.
“Esperamos que Chainlink juegue un papel central en la orquestación del proceso de tokenización, y ha anunciado una variedad de asociaciones, incluyendo con S&P Global y FTSE/Russel, que deberían ayudarlo a hacerlo.”
The market for tokenized assets has expanded from $5 billion to over $35.6 billion since the start of 2023, according to RWA.xyz.
Total RWA onchain. Source: RWA.xyz
Chainlink, JPMorgan, and Ondo Achieve First Crosschain DvP Settlement
In June, Chainlink, along with JPMorgan’s Kinexys network and Ondo Finance, successfully completed a crosschain delivery-versus-payment settlement involving a permissioned bank payment framework and a public blockchain test environment.
This pilot initiative connected Kinexys Digital Payments, a permissioned payment system by JPMorgan, with Ondo Chain’s testnet, which is specialized in tokenized real-world assets. Utilizing Chainlink’s Runtime Environment (CRE) for coordination, the settlement allowed the exchange of Ondo’s tokenized US Treasurys fund, OUSG, for fiat payments without leaving their respective native chains.
