ADDX, ANZ, and Chainlink have collaborated to launch a groundbreaking solution for cross-border transactions involving tokenized commercial papers, as announced on Nov. 6.
This project leverages ADDX’s investment platform, ANZ’s Digital Asset Services, and Chainlink’s Cross-Chain Interoperability Protocol (CCIP) with Private Transactions functionality. It aims to facilitate regulatory-compliant digital asset transactions, enabling financial entities to tokenize and conduct transactions within their existing frameworks.
The choice of commercial paper for this pilot project was strategic due to its short-term nature, allowing for a demonstration of the entire asset lifecycle — from issuance to redemption. Australian investors will be able to purchase and redeem tokenized commercial papers on ADDX, a licensed market operator.
Transaction settlement will take place across private blockchains using Chainlink’s CCIP, with transaction details remaining confidential across the public CCIP network to meet regulatory standards.
Chainlink’s CCIP Private Transactions provide enhanced security, ensuring that private institutional data remains inaccessible to external parties. This includes transaction amounts, counterparty details, bid/ask information, and settlement instructions, safeguarding each transaction within the private blockchain.
Inmoo Hwang, ADDX’s Group CFO, emphasized how this use case streamlines the process for tokenized financial assets, from issuance to redemption. He highlighted the pilot’s potential to enhance operational efficiency, expedite settlement times, and bolster cross-border functionality.
Sergey Nazarov, co-founder of Chainlink, echoed these sentiments, recognizing the significant progress for blockchain technology in transaction processes and secure 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.”
This project was developed as part of Singapore’s Monetary Authority (MAS)-led Project Guardian initiative. Project Guardian is a global effort among policymakers and industry leaders to enhance financial market liquidity and efficiency through asset tokenization.