How Chainlink Will Enable Institutions to Trade Tokenized Assets

Rapid Addition and Chainlink have announced a collaboration to create a Financial Information eXchange (FIX) native blockchain adapter.

The goal is to enhance the ability of financial institutions to communicate with a wide range of tokenized assets.

Blockchain Adapter For Institutional Trading

Rapid Addition and Chainlink aim to bridge traditional financial communication systems with blockchain technology. The integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) with Rapid Addition’s FIX solutions promises a seamless interaction with tokenized assets.

This adapter will cater to emerging markets. These include carbon credits, renewable energy products, and real-world assets such as real estate and collectibles. 

The potential for institutions to engage with these digital assets through established financial messaging protocols could transform institutional trading. Indeed, Mike Powell, CEO of Rapid Addition, confirmed that this integration ensures institutions maintain liquidity and access to post-trade services.

“Partnering with Chainlink allows our clients to leverage their existing trading infrastructures to access the burgeoning digital asset space without duplicating systems and controls,” Powell said.

The FIX protocol has been the backbone of financial transaction communications for over three decades. By combining it with Chainlink’s technology, the adapter ensures compliance and enhances the efficiency of cross-blockchain transactions.

Read more: How To Buy Chainlink (LINK) and Everything You Need To Know

Vince Turcotte, Business Development Lead for Asia Pacific at Chainlink Labs, emphasized the significance of this collaboration in creating new opportunities, benefiting “buy-side participants and brokers.”