Australia’s ANZ Bank is collaborating with the Monetary Authority of Singapore, Chainlink Labs and ADDX to explore token assets and blockchain interoperability.
ANZ Bank, one of Australia’s “Big Four” banks, has become the first Australian bank to join Project Guardian, an initiative by the Monetary Authority of Singapore that aims to explore how real-world assets can be represented as digital tokens on the blockchain, according to a… press release From ANZ.
The move allows ANZ to work with Chainlink Labs (LINK) and ADDX to test the exchange of token assets, such as commercial paper, between private blockchains.
ANZ has adopted Chainlink’s cross-chain interoperability protocol to simulate token asset purchases. The move follows insights from the Swift blockchain interoperability project that began in June.
Tokenization refers to the process of converting traditional assets, such as money market funds, into digital tokens that can be used on blockchain networks. It converts real assets into digital tokens, allowing them to be traded more easily, such as stocks or cryptocurrencies.
ANZ aims to determine whether these digital versions of real-world assets can move more efficiently and securely across different blockchain networks. The bank hopes this will help improve how money and goods flow across the Asia-Pacific region.
Interoperability
Token assets often have interoperability issues, meaning that different blockchains cannot communicate easily. Interoperability is a bottleneck for coding, often creating siled networks that inherently do not communicate with each other.
ANZ plans to use its expertise in digital assets, such as its Australian dollar stablecoin, to help clients navigate this evolving digital financial landscape.
According to the statement, the Guardian project, launched in 2022, promotes cooperation between regulators and the financial industry to enhance liquidity and efficiency in financial markets through tokenization.