The chainlink can be a foundational layer for traditional finances as capital markets will further embrace blockchain infrastructure, according to a report from investment jeffers following a call with chainlink co-founder Sergey Nazarov.
The decentralized Oracle network regulates intelligent contracts with real-world data and off-chain systems, enabling advanced cases of use such as tokenized asset settlement, parametric insurance and cross-chain messaging.
Jefferies said the link (link), the chainlink’s native token, will benefit as the tokenization accelerates.
In September, the chainlink gained $ 103 billion in possessions through Oracle feeds, from $ 23 billion in early 2024, supporting more than 2,500 projects. Collaborations with institutions such as the Swift, DTCC, Euroclear and JPMorgan (JPM) emphasize its role in BRIDGING Crypto and Tradfi, wrote analysts Andrew Moss and Matthew Molta.
The tokenization, which converts real-world assets to programmed digital tokens, drives demand for infrastructure that can safely connect on-chain and off-chain environments. The Chainlink’s Cross-chain Interoperability Protocol (CCIP) and Decentralized Oracle Networks (DONS) addresses this challenge, supporting real-time settlement and automation throughout the financial, insurance, and supply chain, written by analysts.
Jefferies said the adoption of the digital asset remains early, but the tokenization pilots moves quickly towards the manufacture. With the link used to pay for services, node and staking operations, growing demand for chainlink infrastructure can provide token holders of a call to future cash flows.
While rivals such as Layerzero and Pyth exist, the effects on the chainlink network and first-mover’s advantage can provide it with a strong moat on the blockchain infrastructure, the bank said.
Analysts estimated that the tokenized value of the owner reached $ 30 billion excluding Stablecoins, a 253% increase in the year to date.
As tokenization reduces operating costs and increases liquidity, Jefferies said it is expected that institutional investors have moved to the layers of settlement-based on the blockchain, which puts the chainlink in the middle of the move.
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