Chainlink can become a fundamental layer for traditional finances, because capital markets are increasingly embracing blockchain infrastructure, according to a report from Investment Bank Jefferies after a call with co-founder Sergey Nazarov.
The decentralized Oracle Network connects smart contracts with data from the real world and off-chain systems, making advanced user cases such as tokenized asset scheme, parametric insurance and cross-chain messages possible.
Jefferies said that link (link), the native token of Chainlink, will benefit as the tokenization speeds up.
From September, Chainlink $ 103 billion in assets through his Oracle -Feeds, an increase of $ 23 billion early 2024, ensured more than 2500 projects. Partnerships with institutions such as Swift, DTCC, Euroclear and JPMorgan (JPM) underline its role in bridging Crypto and Tradfi, analysts Andrew Moss and Matthew Molta.
Tokenization, converting real-world assets into programmable digital tokens, stimulates the demand for infrastructure that can securely connect in the chain and off-chain environments. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Decentralized Oracle Networks (DONs) take on this challenge, to support real-time settlement and automation about finances, insurance and supply chains, the analysts wrote.
Jefferies said that the acceptance of digital assets will remain early, but that tokenization pilots are going to production quickly. With Link that was used to pay for services, junction activities and deployment, the growing demand for the infrastructure of Chainlink token holders could offer a call about future cash flows.
Although rivals such as Layerzero and Pyth exist, the network effects of Chainlink and the first Mover benefit can give it a sustainable canal in blockchain infrastructure, the bank said.
The analysts estimate that tokenized asset value has reached $ 30 billion with exclusive stablecoins, to date an increase of 253%.
Because tokenization lowers operational costs and increases liquidity, Jefferies said it expected that institutional investors migrate to blockchain-based settlement strokes, so that chain link is placed in the middle of the transition.
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