Chainlink Bold Move: Bridging Finance with Blockchain

Chainlink unveiled strategic initiatives to bridge traditional finance and blockchain, marking a significant move towards integrating digital and traditional asset markets, in its Q4 product update on December 19. The crypto oracle provider outlined plans to support the virtual tokenization of Real World Assets (RWAs) on the blockchain.

The key to Chainlink’s strategy is the expansion of the Cross Chain Interoperability Protocol (CCIP), which was launched in July. Playing a pivotal role, this protocol enables seamless cross-chain transactions. It is a necessity for integrating capital markets and RWAs into the blockchain. Chainlink ambassador “ChainLinkGod” stressed the prioritization of CCIP to meet the increasing demand from capital markets moving on-chain.

Meanwhile, the expansion of CCIP also includes more chains and assets. The size will scale from capital markets to RWA adoption space as well. Moreover, Chainlink introduced two new products–Chainlink Data Streams and Characterizing funnels. Data Streams provide dApps with low-latency data, increasing performance. Now that Chainlink’s Functions enable smart contracts to connect with any API, they can be more useful and customized.

Chainlink Expands Globally, LINK Faces Volatility

Chainlink is also improving the menu of existing services, including automating smart contract execution across chains and creating a more modular network to complement other Chainlink products. Collaboration with asset issuers, auditors, and custodians The company is focusing on developing proof-of-reserve products to increase transparency in valuing underlying assets and verifying collateral baskets.

But also, understanding the significance of a powerful developer base, Chainlink plans to expand its global pool of developers. It will concentrate on playing up for Web2 users. Additionally, emphasizing its dedication to creating an open and fair blockchain environment worldwide, it focuses on the Asia-Pacific (APAC) area and Latin America (LATAM).

Although Chainlink has made such progress, LINK, its native token, bounced around. According to data from CoinMarketcap, LINK reached a 19-month high of $17.25 in December, entering the current month. Its price dropped today under pressure selling in Hong Kong and Taiwan by hitting $15.

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