Chainlink Joins Rapid Add in Building Blockchain Adapters for Institutions

Blockchain oracle project Chainlink has partnered with Rapid Addition, a provider of Financial Information eXchange (FIX) connectivity solutions, to develop a FIX native adapter for institutional digital asset trading.

Chainlink said in its announcement that the adapter will be powered by the Cross-Chain Interoperability Protocol (CCIP), an interoperability protocol with use cases across token transfers, gaming, and decentralized finance (DeFi).

According to Chainlink, the collaboration will allow banks and financial institutions to send messages and participate in “a wide range of tokenized assets.”

The organization believes this is an “untapped market opportunity” that can be applied across renewable energy products, carbon credits and real assets (RWAs) such as real estate, infrastructure and collectibles.

Vince Turcotte, Head of Business Development for Asia Pacific at Chainlink Labs, told Cointelegraph that banks and financial institutions can do a lot of things using the adapter. Similar to the company’s work with SWIFT, the interbank messaging system, Turcotte said financial institutions can encode smart contracts using FIX tags and instructions. The executive explained:

“We expect this to be particularly useful in the post-trade environment as it allows a single source of truth on trade allocations that can be shared simultaneously between asset managers, brokers and custodians without duplication.”

Turcotte added that this information can be fed into downstream legacy systems to reduce settlement errors and rejection rates.

He added that Chainlink’s integration with FIX ensures that existing risk and execution platforms are “interoperable” with new blockchain-based asset types.

Related: The next step in tokenization requires real-world data integration — Chainlink

When asked how new adapters could impact institutional adoption of blockchain or cryptocurrencies, Turcotte said he expects digitally native institutions to be the first to adopt integrations. He explained:

“We expect digitally native institutions to be early adopters of this integration. These institutions recognize the value of participating in the wider TradFi ecosystem using the FIX protocol and the value of permanence and authenticity through blockchain.”

Meanwhile, Turcotte believes that asset managers and their clients can benefit from the infrastructure on a cost basis.

Turcotte added, “Asset managers and their clients save money by having a single source for settlement instructions that is available to all counterparties to a transaction and is continuously updated 24/7.”

magazine: Web3 games won’t exist in 5 years. $656K Needed to Promote Top Crypto Game: Web3 Gamer