CCIP Programmable Token Transfers in TradFi

CCIP Programmable Token Transfers are critical to enabling cross-chain Delivery vs. Payment (DvP) transactions. DvP in traditional finance refers to the requirement that the delivery of assets (e.g., securities) and the payment for those assets happen simultaneously (i.e., atomic settlement). DvP is an important feature in reducing the risk that a counterparty won’t deliver on its leg of the transaction despite the other leg being fulfilled.

The Australia and New Zealand Banking Group Limited (ANZ) demonstrated how CCIP Programmable Token Transfers can enable a cross-border, cross-chain, cross-currency DvP transaction. In a single cross-chain transaction, a stablecoin backed by a local currency (NZ$DC) was converted to another stablecoin in a different national currency (A$DC), transferred from the buyer’s source chain to the seller’s destination chain along with the instruction to purchase a tokenized asset (e.g., reef credits), which was subsequently sent back to the customer’s wallet on the source chain.

To learn more, check out the case study Cross-Chain Settlement of Tokenized Assets Using CCIP written in collaboration with ANZ and the Sibos panel discussion between Chainlink Co-Founder Sergey Nazarov and ANZ’s Banking Services Lead Nigel Dobson.

ANZ used CCIP to showcase a cross-currency, cross-chain settlement of tokenized assets using stablecoins.