ANZ to Kickstart Chainlink Private Transactions Protocol in RWA Boost

The private transactions allow institutional users to define privacy conditions in a way that keeps onchain data private from all third parties and adversaries.

Australia and New Zealand Banking Group (ANZ) is set to pilot Chainlink’s (LINK) CCIP Private Transactions protocol for cross-chain settlement of tokenized real-world assets (RWAs) under Monetary Authority of Singapore’s (MAS) Project Guardian initiative.

The protocol, announced by Chainlink on Tuesday, will enable financial institutions to transact across blockchain networks while maintaining confidentiality and regulatory compliance.

Cross-chain protocols enable token holders to interact with applications and transfer tokens across different blockchains, which is not possible otherwise.

RWAs, on the other hand, refer to a tokenized version of a physical asset, such as artwork or real estate, that is tradeable on the open market.

Institutional requirements include the need for complete end-to-end privacy for private chain to private chain transactions and limiting data exposure for private chain to public chain transactions.

The private transactions protocol will allow institutional users to define privacy conditions that keep onchain data private from all third parties and adversaries, while enabling authorized parties in the transaction or the compliance industry to view that same data.

"Privacy is a critical requirement for most institutional transactions," said Sergey Nazarov, Chainlink co-founder, in a prepared statement.

“So far the blockchain industry has not provided the level of privacy necessary for these institutional transactions to move forward successfully, limiting the entire industry's growth.

“Now that private transactions across chains are possible, we expect an even greater influx of institutional adoption of blockchains, CCIP, and the Chainlink standard in general,” Nazarov added.

The protocol is designed to be chain-agnostic, modular and extensible, allowing for integration with any blockchain or application.

It also includes a privacy-preserving scanning mechanism that enables regulatory bodies and other authorized parties to monitor transactions for suspicious activity without compromising privacy.

The pilot will focus on exploring the technical feasibility and regulatory considerations for cross-chain settlement of tokenized RWAs within a controlled environment, as per a statement from ANZ.

The bank will work closely with Chainlink, MAS and other participants in Project Guardian to evaluate the potential of the protocol for institutional adoption and broader real-world applications.