In a significant move toward revolutionizing the financial sector, the Australia and New Zealand Banking Group (ANZ) is making strides in the world of blockchain technology by exploring the tokenization of real-world assets through the use of Chainlink. Nigel Dobson, ANZ's banking services portfolio lead, recently announced that the bank is seeing "real value" in tokenizing assets like the Australian dollar. This innovative approach could reshape the banking industry as we know it.
Traders reacted positively to this development, as LINK’s price skyrocketed more than 6% over the past 24 hours. This daily increase in price had also propelled LINK’s weekly performance further into the green zone.
Furthermore, technical indicators on LINK’s daily chart suggested that the altcoin’s price may continue to rise in the coming 24-48 hours. If this bullish scenario plays out, LINK’s price may have the support needed to flip a key resistance level into support soon.
A Milestone Achievement
ANZ has taken a crucial step towards realizing its vision with the successful execution of a test transaction on Chainlink's Cross-Chain Interoperability Protocol (CCIP). The transaction simulated the purchase of a tokenized asset, facilitated using ANZ's bank-issued stablecoin, known as A$DC, along with an ANZ-issued NZ-dollar-denominated stablecoin. Nigel Dobson described this achievement as a "milestone" moment for the bank.
ANZ's Pursuit of Decentralized Networks
To explore the full potential of blockchain technology, ANZ is actively experimenting with various decentralized networks. This approach, described as a "test-and-learn" strategy by Dobson, signifies the bank's commitment to staying at the forefront of technological advancements. By embracing decentralized networks, ANZ aims to unlock new possibilities and discover where its Australian dollar stablecoin can be best utilized.
Tokenization of Real-World Assets
The concept of tokenizing real-world assets is at the core of ANZ's strategic vision. This involves converting tangible assets, such as the Australian dollar, into digital tokens on a blockchain. Tokenization offers several advantages, including increased liquidity, transparency, and accessibility. As Dobson points out, "Tokenized assets are already changing the way banking works, and the technology has the potential to do more — if the right pieces can come together."
ANZ's Pioneering Move
ANZ made history in March 2022 by minting the first A$DC stablecoin, becoming the first Australian bank to do so. This bold move signaled the bank's commitment to innovation and its willingness to embrace blockchain technology. A year later, the National Australia Bank (NAB) followed suit with its own AUDN stablecoin on the Ethereum network.
Challenges and Roadblocks
Despite the pioneering efforts of ANZ and NAB, some Australian banks, including the Commonwealth Bank of Australia, Westpac, and Bendigo Bank, have imposed restrictions and even full blocks on bank transfers to select "high-risk" cryptocurrency exchanges. These measures have been justified on the grounds of protecting customers from cryptocurrency scams.
The Future of Banking
ANZ's foray into blockchain technology and the tokenization of real-world assets represents a significant shift in the banking industry. It underscores the potential for banks to play a pivotal role in the world of cryptocurrencies and digital assets. As more financial institutions explore similar initiatives, the future of banking is likely to be shaped by the convergence of traditional finance and blockchain technology.
Chainlink's Recent Developments and Potential Impact on LINK
In related news, Chainlink's supply held by whales reached a new weekly high, potentially signaling a large whale purchase that could have contributed to the recent bullish momentum of the LINK token. Additionally, there has been an increase in LINK's circulating supply due to token unlocks from non-circulating supply contracts, raising questions about the potential impact on the coin's price.
Token Unlocks and Potential Sell Pressure
Token unlocks typically result in a higher circulating supply for the underlying asset, which, in this case, is the LINK token. The recent increase in circulating supply by approximately 18.75 million tokens might raise concerns about the possibility of sell pressure affecting LINK's price. However, it is essential to note that previous token unlocks for LINK did not lead to significant price changes.
The prevailing bullish momentum in recent days could offset any incoming sell pressure triggered by the increased circulating supply. This positive sentiment within the market may provide support for LINK's price.
Limited Impact of Token Unlocks
While the recent token unlocks represent a notable addition to LINK's circulating supply, they account for only 2.82% of Chainlink's total circulating supply. This relatively small percentage suggests that the impact of these unlocked tokens on LINK's price might be limited. Nevertheless, it is still possible that the increased circulating supply could result in some sell pressure, albeit potentially minor.
Whale Activity and Bullish Momentum
The surge in Chainlink's supply held by whales indicates significant purchases by large investors. This activity might have contributed to the recent bullish trend observed in LINK's price. Whale investments often carry substantial influence in the cryptocurrency market, and their actions can sway market sentiment.
Network Growth and Development
Despite the positive price momentum, Chainlink's network growth and development recently hit a weekly low. This aspect could potentially affect investor sentiment, although it has not significantly impacted LINK's weighted sentiment, which remains at its weekly high. It is essential to monitor how Chainlink's network growth progresses in the coming weeks, as it may influence investor confidence.
Chainlink's Collaboration with DCCT
One of the most intriguing developments surrounding Chainlink is its involvement with the Depository Trust & Clearing Corporation (DTCC), the largest securities settlement system globally. The DTCC's exploration of Chainlink in the tokenized asset market signifies the protocol's efforts to tap into the growing segment of tokenized assets in the WEB3 space. This collaboration has the potential to bring billions of dollars into the Chainlink ecosystem and contribute to its long-term growth.
Price Overview
The cryptocurrency price tracking website CoinStats indicated that LINK was changing hands at $6.63. This was after the altcoin achieved a 6.63% gain over the past 24 hours, which also added to the cryptocurrency’s positive weekly streak. Subsequently, LINK was up more than 12% over the past 7 days.
Price chart for LINK (Source: CoinStats)
LINK displayed similar strength against the market leader Bitcoin (BTC) as well. At press time, data from CoinStats indicated that LINK was up 5.07% against BTC. This meant that 1 LINK token was estimated to be worth 0.00024555 BTC.
LINK’s price may continue to rise in the coming 24-48 hours as the cryptocurrency was trading just below its 24-hour peak of $6.64. Meanwhile, LINK’s daily low was situated at $6.08 at press time.
Technical Overview
Daily chart for LINK/USDT (Source: TradingView)
From a technical perspective, indicators on LINK’s daily chart supported a bullish outlook for altcoin. During the past 48 hours, the 9-day EMA line crossed above the 20-day EMA. This is a significant bullish technical flag that signaled that buyers have gained the upper hand. Furthermore, the daily MACD line was positioned bullishly above the MACD signal line, which suggested that the newfound bullish momentum may continue in the coming few days.
If these technical flags are validated, LINK’s price may look to flip the $6.680 resistance level into support. Thereafter, the cryptocurrency’s price will have a clear path to rise to the next threshold at $7.731.
This bullish thesis will be invalidated, however, if LINK’s price drops below the 9-day EMA line, which was situated around $6.247, in the coming 48 hours. In this scenario, LINK’s price may lose the support of the $6.127 mark and potentially continue to drop to $5.350 in the following 2 weeks.
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
