Australia’s ANZ joins Project Guardian on tokenized assets

Australia’s ANZ Financial institution is partnering with the Financial Authority of Singapore, Chainlink Labs, and ADDX to discover tokenized property and blockchain interoperability.

ANZ Financial institution, considered one of Australia’s “Huge 4” banks, has change into the primary Australian financial institution to affix Challenge Guardian, an initiative by the Financial Authority of Singapore geared toward exploring how real-world assets may be represented as digital tokens on blockchains, in response to a press release from ANZ.

This transfer permits ANZ to work with Chainlink Labs (LINK) and ADDX to check the alternate of tokenized property, reminiscent of business paper, between non-public blockchains.

ANZ adopted Chainlink’s cross-chain interoperability protocol to simulate tokenized asset purchases. This transfer adopted insights from the Swift blockchain interoperability venture began in June.

Tokenization refers to the process of turning conventional property, like cash market funds, into digital tokens that can be utilized on blockchain networks. It converts actual property into digital tokens, permitting them to be traded extra simply, like shares or cryptocurrencies. 

ANZ goals to find out whether or not these digital variations of real-world property can transfer extra effectively and securely throughout totally different blockchain networks. The financial institution hopes it will assist enhance how cash and items circulate throughout the Asia-Pacific area.

Interoperability 

Tokenized property often face interoperability points, which means totally different blockchains can’t simply talk. Interoperability is a barrier to tokenization, usually creating remoted networks that don’t inherently talk with one another.

ANZ plans to make use of its expertise with digital property, reminiscent of its Australian Greenback stablecoin, to assist clients navigate this evolving digital finance panorama.

In line with the discharge, Challenge Guardian, launched in 2022, promotes collaboration between regulators and the monetary trade to boost liquidity and effectivity in monetary markets by tokenization.