SBI Group, one of Japan’s largest financial conglomerates with assets exceeding the equivalent of US$200 billion, has announced a strategic partnership with Chainlink, an oracle platform widely used in the blockchain sector.
The collaboration is intended to support the adoption of blockchain technology and digital assets in global markets.
Japan’s financial market and its developing digital asset ecosystem are seen as an appropriate environment to test and implement initial applications.
The partnership combines SBI’s market experience with Chainlink’s infrastructure for data and interoperability, already in use among financial institutions and decentralised finance applications.
The partnership will explore use cases for financial institutions in Japan and the wider Asia Pacific region.
These include the development of cross chain tokenised real world assets such as real estate and bonds, using Chainlink’s Cross Chain Interoperability Protocol, which allows secure transactions across multiple blockchains while maintaining compliance and privacy.
Chainlink SmartData and CCIP will also be applied to provide onchain net asset value data for tokenised funds, with the aim of improving liquidity and operational efficiency.
Other areas of focus include payment versus payment for foreign exchange and cross border transactions, alongside the use of Chainlink Proof of Reserve to verify reserves supporting stablecoins.
“We have been building very advanced fund tokenisation and stablecoin DvP use cases with SBI for a while now, and I am excited to see our great work move towards a state of production usage at a large scale. SBI’s choice to rely on the Chainlink standard for their digital asset transactions shows that the security and reliability, compliance features, and cross border connectivity of Chainlink are what is needed to do high value institutional transactions,”
said Sergey Nazarov, Co Founder of Chainlink.
“Chainlink is a natural partner for SBI, complementing our financial footprint with their market leading interoperability and reliability onchain. With our combined strengths, we are delighted to be working together on developing secure, compliance focused solutions, including powering compliant cross border transactions using stablecoins, that accelerate the wider adoption of digital assets in Japan and the region,”
said Yoshitaka Kitao, Representative Director, Chairman, President and Chief Executive of SBI Holdings.
Featured image credit: Edited by Fintech News Hong Kong, based on image by ksandrphoto via Freepik