Under the Monetary Authority of Singapore (MAS)’s Project Guardian, ADDX, in collaboration with ANZ and Chainlink, has announced a new use case focused on the entire asset lifecycle of tokenized commercial paper for cross-border transactions.
The use case leverages ADDX’s investment platform, ANZ’s Digital Asset Services and Chainlink’s Cross-Chain Interoperability Protocol (CCIP), including its recently announced Private Transactions capability.
For the purpose of this use case, the participants have selected commercial paper as the candidate asset class. The short duration of the commercial paper, the parties say, makes it possible to showcase the entire asset lifecycle within the pilot, from issuance and subscription to settlement and redemption.
This transaction, the parties point out, will show that regulated financial entities can securely tokenize and execute digital asset transactions using their existing systems while staying within the regulatory frameworks that ensure the integrity of financial markets.
The use case demonstrates how an Australian-based investor can purchase and redeem tokenized commercial paper issued on a platform of a licensed, recognized Singaporean market operator, such as ADDX. Chainlink CCIP orchestrates the transaction settlement across two private, permissioned blockchain environments.
To help meet regulatory requirements, these transaction details must remain confidential, even as the tokenized assets use the public CCIP network to move across two separate private blockchains.
This is achieved through the use of CCIP Private Transactions, which prevents third parties from accessing private data within institutional chains and cross-chain transactions, including amounts, counterparty details, bid/ask sides and settlement instructions.
“The pilot aims to enhance operational efficiency, accelerate settlement times and improve cross-border capabilities,” says Inmoo Hwang, ADDX’s co-founder and group CFO. “By leveraging Chainlink CCIP for secure and compliant blockchain interoperability, this use case showcases the utility of tokenized financial assets within a regulated environment.”
Richard Schroder, ANZ’s head of digital asset services, adds: “While we see significant potential for blockchain technologies to streamline the entire asset lifecycle, transaction confidentiality and meeting compliance obligations remain paramount.”
Sergey Nazarov, Chainlink’s co-founder, notes: “Privacy of transactions has been a longtime limiting factor for capital markets adoption of digital assets and blockchains more generally. With CCIP Private Transactions, we are able to conduct private on-chain transactions in a way that meets the highest level of compliance requirements.”
