Sergey Nazarov, the creator of Chainlink, says that traditional finance (TradFi), which is currently a separate world from decentralized finance (DeFi), will soon be linked via LINK.
Nazarov said on social media platform X, that TradFi was preparing to make the next major step in adopting digital assets and smart contract.
TradFi’s adoption of smart contracts and digital assets is only the beginning. After the largest banks and asset managers in the world have joined Chainlink, connecting them with the DeFi protocol powered by Chainlink is the next step.
When there is one standard that explains how to make transactions across different chains, as well as the worlds of DeFi (decentralized financial infrastructure) and TradFi (trade-based financial infrastructure), we’ll be able to enter the global Internet of Contracts. This will fulfill the promise of our industry.”
Nazarov mentions the Chainlink Labs’ Digital Assets Sandbox, powered by their Cross-Chain Interoperability Protocol.
Chainlink DAS is designed to help financial institutions “accelerate innovation in digital assets” by providing them with “ready-to use business workflows.”
Chainlink Labs says that institutions are now able to use DAS to digitalize a bond, by converting the traditional bonds into tokens. The tokens can then be exchanged and settled using a Payment versus Delivery basis.
Kevin Johnson, head of the innovation competency centre at Euroclear’s world settlement company, says:
It provides a secure environment for market participants to experiment, learn and ultimately build a strong business case in order to invest in their digital asset strategies. The sandbox allows teams to learn and experiment with digital assets, ultimately building a business case for investing in them .”
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