Chainlink unveils Digital Asset Sandbox to speed up tokenization trials within days

Key Takeaways

• Chainlink launches Digital Assets Sandbox to accelerate digital asset innovation for financial institutions.
• The sandbox supports experimentation with various financial instruments, including bond tokenization, collateralization, and cross-chain trading.

Decentralized oracle network Chainlink has launched Chainlink Digital Assets Sandbox (DAS), a platform designed to fast-track digital asset innovation, said the firm in a Thursday press release . With Chainlink’s DAS, financial institutions can conduct tokenization trials and Proof of Concepts (PoCs) within days, instead of months.

The motive behind the new solution is the ongoing strong demand for secure digital environments that can handle blockchain applications, explained Angela Walker, Global Head of Banking and Capital Markets at Chainlink Labs. The DAS allows for safe, quick experimentation with digital assets and their applications, as well as speeds up the development and launch of new financial products.

“The Chainlink Digital Asset Sandbox addresses this need by enabling institutions to create rapid Proof of Concepts in days, not months, and leverage Chainlink Labs’ experience in research and development to bring these use cases to life,” said Walker.

“The institutional world needs access to the blockchain industry, and Chainlink is the safe and secure standard that has the capabilities to facilitate onchain finance at scale, improving financial industry infrastructure,” she added.

The DAS is built on Chainlink’s platform, which has facilitated over $12 trillion in transaction value. In addition to accelerating innovation and enhancing efficiency, the platform enables the exploration of new revenue streams through asset tokenization, according to Chainlink.

“The Digital Asset Sandbox provides market participants with a safe environment where financial institutions and fintech alike can experiment and understand how the technology impacts operating and business models. It gives teams the ability to experiment, learn, and ultimately build a strong business case to invest in their digital asset strategies,” said Kevin Johnson, Head of Innovation Competence Centre at Euroclear.

The sandbox supports various digital asset use cases, including bond tokenization, collateralization, and cross-chain trading, the team noted. Chainlink Labs also provides consultancy services to guide institutions through the adoption process.

Chainlink has recently teamed up with Sygnum and Fidelity International to bring Net Asset Value (NAV) data on-chain. The collaboration allows Sygnum to tokenize and provide on-chain access to the NAV data for Fidelity International’s $6.9 billion Institutional Liquidity Fund.