Chainlink believes its new Chainlink Digital Assets Sandbox (DAS) will accelerate digital asset innovation within financial institutions.
The company said Chainlink DAS is designed for financial institutions that want to quickly innovate and experience the potential of generating new revenue opportunities, increasing efficiencies and improving time-to-market. With the Digital Assets Sandbox, institutions can access ready-to-use business workflows for digital assets.
For example, institutions can use the Chainlink DAS to experiment with bond tokenization in a sandbox environment by digitizing a traditional bond and converting it into a digital token, which can be used as collateral for financing or traded across multiple chains and settled on a Delivery versus Payment (DvP) basis. This platform also allows for experimentation with other real-world digital asset use cases involving a variety of financial instruments across their entire life cycles.
Sandbox users can also receive the support and consultancy services of Chainlink Labs. The enterprise-grade sandbox is underpinned by Chainlink’s platform, which has enabled more than $12 trillion in transaction value and is collaborating with Swift, ANZ Bank, Fidelity International and Sygnum.
“The Digital Asset Sandbox provides market participants with a safe environment where financial institutions and fintechs alike can experiment and understand how the technology impacts operating and business models. It gives teams the ability to experiment, learn, and ultimately build a strong business case to invest in their digital asset strategies,” said Kevin Johnson, head of Innovation Competence Centre at Euroclear.
Northern Trust and HSBC estimate that 5-10% of all assets will be digital by 2030. A joint study from BCG and ADDX projects the tokenized asset market to reach $16 trillion or 10% of the global GDP.
“Through our many conversations with leading market participants, we’ve identified a critical need for secure digital asset environments capable of handling blockchain use cases,” said Angela Walker, global head of banking and capital markets at Chainlink Labs. “The sandbox addresses this need by enabling institutions to create rapid Proof of Concepts in days, not months, and leverage Chainlink Labs’ experience in research and development to bring these use cases to life. The institutional world needs access to the blockchain industry, and Chainlink is the safe and secure standard that has the capabilities to facilitate on-chain finance at scale, improving financial industry infrastructure.”
