Built on Ethereum, decentralized oracle network Chainlink has developed new privacy-oriented solutions meant to let financial institutions safely move between blockchain networks. Maintaining total data privacy in a cross-chain context, these technologies seek to answer a major problem facing organizations.
Announced on October 22, Chainlink’s new privacy-preserving solutions have two main elements: CCIP Private Transactions and the Blockchain Privacy Manager. Financial companies specifically use these instruments to integrate blockchain technologies, ensuring complete anonymity for their transactions.
We're excited to announce CCIP Private Transactions, enabling financial institutions to connect private blockchains to the multi-chain economy.
— Chainlink (@chainlink) October 22, 2024
Australia and New Zealand Banking Group (ANZ) will be among the first financial institutions to pilot the capability for cross-chain… pic.twitter.com/1Qmm9nURqz
ANZ Bank plans a new technology pilot project.Among the first companies to try Chainlink’s privacy capabilities will be Australia and New Zealand Banking Group (ANZ). The Monetary Authority of Singapore’s Project Guardian, which aims to explore blockchain use cases in finance, will see the bank implementing the new technology to settle tokenized real-world assets (RWAs).
ANZ will be able to join private blockchains with both public and private networks using the Chainlink CCIP network by means of Chainlink’s Blockchain Privacy Manager. This lets companies safely combine private blockchains with conventional financial systems while still keeping control over which data third parties may view.
By allowing institutions to encrypt private data—such as transaction amounts and counterparties—while doing business across many private chains, the CCIP Private Transactions tool offers an additional degree of security. This guarantees that private transaction data is only accessible to authorized users or regulatory entities.
Handling the demand for private blockchain transactionsChainlink claims that the lack of safe, cross-chain privacy has been a main obstacle keeping financial institutions from totally embracing blockchain technology. Particularly for transactions using private and public blockchains, regulatory criteria, including Europe’s General Data Protection Regulation (GDPR), need rigorous privacy measures.
Co-founder of Chainlink Sergey Nazarov underlined that institutional acceptance of blockchain technology depends on anonymity. As private, compliant blockchain transactions become more practical, he anticipates these new capabilities generating a tsunami of institutional interest.
“Most institutional transactions depend critically on privacy,” Nazarov remarked. “We expect institutional adoption to rise significantly now that private transactions across chains are feasible.”
With these developments, Chainlink hopes to hasten blockchain integration in the financial industry, thereby arming institutions with the means to comply with data protection regulations and carry out safe, mass transactions across several blockchain ecosystems.
