Avalanche and Chainlink Power Tokenized Asset Settlement Project

Introduction to Tokenization in Financial Services

The financial services sector is being fundamentally reshaped by blockchain technology, smart contracts, and tokenization. Recent institutional research underscores this momentum, with a SWIFT report noting that 97% of institutional investors see tokenization as a game changer for asset management. This evolution signals a deep shift away from legacy capital markets infrastructure and conventional workflows, as financial institutions transition from centralized systems to decentralized, transparent, and efficient blockchain-based platforms.

ANZ and Chainlink Labs Collaboration Overview

Australia and New Zealand Banking Group (ANZ)—a top-tier financial institution serving more than 8.5 million retail and institutional clients across nearly 30 global markets—joined forces with Chainlink Labs to demonstrate leading-edge cross-chain settlement for tokenized assets. ANZ utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to connect Avalanche and Ethereum blockchains seamlessly. This partnership showcased how institutional clients can access, trade, and settle tokenized assets across distinct blockchain ecosystems, managing transactions in multiple currencies. The initiative is a real-world example of legacy financial institutions embedding blockchain technology into their core operations.

Understanding Delivery vs. Payment (DvP)

Delivery vs. Payment (DvP) stands as a core settlement and risk-management principle in securities trading, requiring payments to occur at the same time or before asset delivery. Traditional DvP frameworks depend on numerous intermediaries and complicated reconciliation processes. Blockchain enables direct modernization of these systems via tokenization and automated smart contracts. By moving both assets and payments onto the same blockchain, institutions achieve atomic, intermediary-free DvP settlement. Transactions execute instantly, without third-party involvement, cutting settlement times from days to minutes or seconds and sharply reducing counterparty risk.

Implementation Workflow and Technical Architecture

ANZ’s project delivered a sophisticated cross-chain workflow. Customers accessed ANZ’s Digital Asset Services portal to purchase tokenized New Zealand dollar stablecoins on Avalanche. They then acquired tokenized Australian nature-based assets—issued as NFTs and denominated in Australian dollar stablecoins—on Ethereum. ANZ provided foreign exchange conversion, while Chainlink’s CCIP powered the secure backend for data transmission and token transfers between blockchains. This layered architecture separates backend complexity from the user interface, delivering a seamless institutional experience for tokenized asset transactions across multiple chains.

Avalanche L1 Customization and Benefits

For this initiative, ANZ launched its own Avalanche Layer 1 blockchain, leveraging EVM compatibility, permissioning controls, and custom gas tokens. Avalanche’s Evergreen Subnets framework empowered ANZ to create a bespoke blockchain environment, allowing approved counterparties to collaborate within a regulatory-compliant structure. Institutions using Avalanche L1s enjoy tailored blockchain solutions matched to their needs, while tapping into the public blockchain innovation and developer communities. Avalanche Warp Messaging further enables seamless communication and settlement between multiple L1s on the network.

Broader Ecosystem Impact

ANZ’s project highlights Avalanche’s growing ecosystem for tokenization and on-chain finance, placing the platform at the frontier of traditional and decentralized finance. Other major players have followed suit: WisdomTree and leading Wall Street firms participate in Spruce, an Avalanche L1 dedicated to institutional testing of on-chain finance. Major institutions like Citi and J.P. Morgan have launched blockchain initiatives using Avalanche L1s through Project Guardian, backed by Singapore’s Monetary Authority. These collaborative efforts demonstrate large-scale, institutional adoption of blockchain in the financial industry.

Future Prospects and Deployment

ANZ’s test transactions reveal strong potential for transforming how tokenized assets develop and scale in financial services. Successful cross-chain settlement lays the foundation for broader adoption. The next step is deployment on blockchain mainnets, shifting from controlled testing to real-world production. ANZ also plans to expand workflows for multi-chain communication and diverse use cases, empowering institutions to manage complex, multi-chain asset portfolios with top-tier security and efficiency.

Conclusion

The collaboration between ANZ, Chainlink Labs, and Avalanche marks a key breakthrough in linking traditional finance with blockchain innovation. By successfully demonstrating atomic cross-chain settlement of tokenized assets, the initiative shows how established institutions are preparing for a next-generation capital markets ecosystem powered by blockchain. Chainlink’s interoperability and Avalanche’s customizable L1 architecture give financial institutions robust tools to modernize settlement, simplify operations, and boost market efficiency. As these technologies move toward mainnet deployment, global financial services will undergo profound changes in asset trading, settlement, and management.

FAQ

Are banks using Chainlink?

Yes, banks are adopting Chainlink for decentralized oracle services, supporting cross-border transactions and CBDC initiatives. This trend is set to accelerate in the near term.

Which major companies use Chainlink?

Chainlink is used by leading companies such as Swift, Euroclear, Mastercard, and Fidelity. It powers billions of dollars in on-chain transactions for global financial institutions.