Chainlink Launches Digital Assets Sandbox to Foster Innovation in Financial Institutions

The Tokenizer August 19, 2024

Chainlink has announced the launch of the Chainlink Digital Assets Sandbox (DAS), a platform designed to help financial institutions explore and develop digital asset solutions. The DAS offers a controlled environment where institutions can experiment with tokenizing traditional financial instruments, such as bonds, and explore the use of digital tokens as collateral or for trading across multiple blockchains.

The Chainlink DAS aims to simplify the process of digital asset innovation, allowing institutions to access pre-built business workflows. For example, institutions can use the sandbox to digitize a bond and convert it into a digital token, which can then be used in various financial activities, including trading and settlement on a Delivery versus Payment (DvP) basis. The platform supports experimentation with a wide range of financial instruments and their associated life cycles.

Chainlink Labs, the primary developer of the platform, offers support and consultancy services to DAS users. With a background in enabling over $12 trillion in transaction value through blockchain technology, Chainlink Labs provides the necessary expertise to guide institutions through the stages of digital asset adoption, from initial exploration to full-scale production.

Kevin Johnson, Head of Innovation Competence Centre at Euroclear, emphasized the value of the Digital Asset Sandbox for market participants. “The Digital Asset Sandbox provides a secure environment for financial institutions and fintechs to experiment, learn, and develop a solid business case for their digital asset strategies,” he said.

The launch of DAS comes at a time when asset tokenization is gaining traction in capital markets. Estimates from Northern Trust and HSBC suggest that 5-10% of all assets will be digitized by 2030. A joint study by BCG and ADDX projects the tokenized asset market could reach $16 trillion, representing 10% of global GDP.

Angela Walker, Global Head of Banking and Capital Markets at Chainlink Labs, highlighted the significance of the DAS in meeting the needs of the financial sector. “We’ve identified a critical need for secure digital asset environments,” she said. “The Chainlink Digital Asset Sandbox enables institutions to quickly create Proof of Concepts and leverage our expertise to bring these projects to fruition.”

Chainlink’s infrastructure has been widely adopted across the financial industry, with collaborations involving major institutions such as Swift, DTCC, and ANZ Bank. The launch of the Digital Assets Sandbox marks another step in Chainlink’s efforts to support the growing demand for blockchain-based financial solutions.

For more information on the Chainlink Digital Assets Sandbox and the broader trend of asset tokenization, Chainlink has released an industry report that includes insights from BCG, 21Shares, Paxos, and others.