Australia’s ANZ Bank is cooperating with the Monetary Authority of Singapore, Chainlink Labs, and ADDX to examine tokenized assets and blockchain interoperability.
According to a news release from ANZ, ANZ Bank, one of Australia’s “Big Four” banks, has become the first Australian bank to join Project Guardian, an effort by the Monetary Authority of Singapore focused on examining how real-world assets might be represented as digital tokens on blockchains.
This step allows ANZ to work with Chainlink Labs and ADDX to explore the exchange of tokenized assets, such as commercial paper, between private blockchains.
ANZ deployed Chainlink’s cross-chain interoperability technology to replicate tokenized asset acquisitions.
This action followed insights from the Swift blockchain interoperability initiative initiated in June. Tokenization refers to changing traditional assets, such as money market funds, into digital tokens that may be utilized on blockchain networks.
It turns actual assets into digital tokens, letting them be exchanged more readily, like stocks or cryptocurrency.
ANZ seeks to discover whether these digital copies of real-world assets can flow more effectively and securely across multiple blockchain networks.
The bank anticipates that this will enhance the movement of commodities and money throughout the Asia-Pacific area.
Interoperability
Tokenized assets frequently have communication problems between multiple blockchains due to interoperability difficulties.
Tokenization is hampered by interoperability, which frequently results in separate networks with no intrinsic means of communication.
ANZ intends to assist clients in navigating this changing world of digital finance by drawing on its experience with digital assets, such as its stablecoin denominated in Australian dollars.
As per the press release, Project Guardian was initiated in 2022 to foster cooperation between regulatory bodies and the financial sector to augment liquidity and efficacy in financial markets via tokenization.
