Private market exchange ADDX, Australia and New Zealand Banking Group (ANZ) and Chainlink have launched an innovative solution for cross-border transactions involving tokenized commercial paper, according to a November 6 report statement.
The project leverages ADDX’s investment platform, ANZ’s Digital Asset Services and Chainlink’s Cross-Chain Interoperability Protocol (CCIP) with its private transaction functionality. It is designed to enable regulatory compliant digital asset transactions, allowing financial entities to tokenize and execute these transactions within their existing frameworks.
Commercial Paper was chosen for this pilot because of its short-term nature, which allows the entire life cycle of assets – issuance, subscription, settlement and repayment – to be demonstrated. This setup will allow Australian investors to purchase and redeem tokenized commercial papers on ADDX, a licensed market operator.
Transaction settlement will be managed via private blockchains using Chainlink’s CCIP, and transaction data will remain confidential via the public CCIP network to meet regulatory requirements.
Chainlink’s CCIP Private Transactions further enhance security and ensure that private institutional data is not accessible to outside parties. This includes transaction amounts, counterparty details, bid/ask information and settlement instructions, securing every transaction within the private blockchain.
Inmoo Hwang, Group CFO of ADDX, noted that the use case simplifies the entire process for tokenized financial assets, from issuance to redemption. He highlighted the pilot’s potential to improve operational efficiency, accelerate settlement times and strengthen cross-border functionality.
Chainlink co-founder Sergey Nazarov echoed the sentiment, adding that the use case represents a significant advancement for blockchain technology, both in the transaction process and in its secure, innovative execution. He stated:
“Transaction privacy has long been a limiting factor in capital markets’ adoption of digital assets and blockchains in general. With CCIP Private Transactions we are able to carry out private transactions in the chain in a way that meets the highest compliance requirements.”
The project was developed under the Singapore Monetary Authority (MAS)-led Project Guardian initiative. Project Guardian is a global collaboration between policymakers and key industry players
improve the liquidity and efficiency of financial markets through asset tokenization.