- Chainlink teams up with Rapid Addition to develop a FIX-native blockchain adapter, enhancing institutional digital asset trading.
- The collaboration allows banks and financial institutions to smoothly connect with a range of tokenised assets through their current infrastructure.
- This joint effort represents a major advancement in merging conventional financial systems with blockchain technology.
Chainlink continues to establish itself as a pivotal player in the crypto scene. Recently, Chainlink’s Sergey Nazarov touted nothing less than the merger of traditional finance with the blockchain, with the help of Chainlink.
Now, the oracle network announces a partnership with FIX connectivity solutions provider Rapid Addition. The two will essentially work on “the development of a FIX-native blockchain adapter for institutional digital asset trading powered by Chainlink’s CCIP”.
Related: Coinbase CEO Says Layer-2 Solutions Will Transform Crypto Industry
Rapid Addition, renowned for its expertise in onchain data and blockchain interoperability, is partnering with Chainlink to allow banks and financial institutions to engage with a diverse array of tokenised assets. This will include carbon credits, renewable energy, real estate, and collectibles, thereby creating new market opportunities.
Mike Powell, CEO of Rapid Addition, said that the partnership with Chainlink allows clients to integrate smoothly into blockchain platforms, using existing systems to access new digital asset markets without additional duplication:
Working with Chainlink on this new capability means our clients will benefit from seamless and secure integration into blockchain-based platforms without the need to duplicate systems and controls. As a result of this collaboration with Chainlink, financial institutions will be able to leverage their existing trading infrastructure to enter the new era of digital assets.
Mike Powell, CEO of Rapid Addition FIX, or the Financial Information eXchange protocol, is a communication standard for the real-time electronic exchange of securities transactions.
It improves communication among brokers, institutions, and exchanges by streamlining the transmission of trading data like quotes and orders in a standardised format. The protocol supports various asset classes and transaction types, reducing trading costs and complexity through a common language used by finance professionals globally.
CCIP Will Be Useful For Post-Trading, Says Business Development Lead
The Cross-Chain Interoperability Protocol (CCIP) enables developers to build smart contracts that communicate and trigger functions across different blockchains.
It supports cross-chain transfers of various tokens like ETH, USDC, and LINK, with plans to add more. Chainlink recently announced that CCIP is now generally available, allowing developers to integrate it across all supported blockchain mainnets more quickly, easily, and independently than ever before.
The business development lead at Chainlink Labs for the APAC region, Vince Turcotte, told CoinTelegraph that banks and financial institutions can utilise the adapter in various ways, similar to their collaboration with SWIFT. According to Turcotte, these organisations can incorporate FIX tags and instructions into smart contracts, enhancing their functionality and integration – which will lead to fewer rejections and less settlement errors.
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We expect this will be particularly useful for the post-trade environment, as it will allow a single source of truth for trade allocations, which can be shared simultaneously and without duplication between asset managers, brokers, and custodians.
Vince Turcotte, business development lead at Chainlink Labs
Source:
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