Blockchain oracle provider Chainlink has announced a collaboration with Rapid Addition, a company specializing in FIX connectivity solutions, to create a FIX-enabled adapter designed to enhance institutional trading of digital assets.
The initiative will use Chainlink's #Chainlink Cross-Chain Interoperability Protocol (CCIP), which is designed to facilitate a variety of applications including token transfer, gambling and decentralized finance (DeFi).
Chainlink's new development is designed to enable banks and financial institutions to seamlessly interact with various tokenized assets.
Chainlink sees this venture as a promising market opportunity with the potential to revolutionize renewable energy, carbon credits, real world assets (RWAs) such as real estate, infrastructure and collectibles.
Vince Turcotte, Head of Business Development for Asia Pacific at Chainlink Labs, shared his views on the potential of this adapter with Cointelegraph.
Drawing parallels with Chainlink's work with the SWIFT banking system, Turcotte emphasized that financial institutions can use this adapter to embed smart contracts with specific FIX tags and instructions.
He emphasized its usefulness in the post-trade process, stating that "we expect it to be particularly useful in the post-trade environment as it allows for a single source of truth for the distribution of trades that can be transmitted simultaneously and without duplication between asset managers, brokers and custodians.
Mr. Turcotte also noted that the adapter will facilitate integration with existing legacy systems and increase efficiency by reducing errors and settlement failures.
He explained that the synergy between ChainLink and FIX will allow traditional risk management and trade execution platforms to interact effectively with new types of blockchain-based assets.
Commenting on the broader implications of this technological advancement, Turcotte suggested that digitally-enabled financial institutions are likely to lead the way in adopting this integration.
Read us at: Compass Investments
