ChainLink Head of Business Development Talks Tokenisation at Australian Crypto Convention
Resurging Interest in Blockchain and Tokenisation
Niki Ariyasinghe, Head of Business Development, Asia-Pacific and Middle East at Chainlink Labs spoke at the Australian Crypto Conference about tokenisation and ChainLink’s role in it.
Ariyasinghe said that the past few years showed diminished enthusiasm for blockchain, with consortiums dissolving and projects facing challenges due to complexities and corporate barriers.
As of 2023, he said, there has been a resurgence, known as the rise of tokenisation. Optimism has returned, with renewed focus and discussions on blockchain’s potential in transforming real-world asset markets. Ariyasinghe said the period is marked by a growing belief in blockchain’s utility, with projections of significant market growth in the coming years. New organisations are applying lessons learned from past experiences, exploring innovative ways to leverage blockchain for tangible business and customer value.
ChainLink’s Role in Decentralised Networks
ChainLink (LINK) addresses two key issues, notably the Oracle problem, by securely and reliably bringing off-chain data onto blockchains. Over the past four to five years, ChainLink has been known for providing price data to 15 blockchains, pricing 60-80% of assets in DeFi at any time through a decentralised network of Oracle node operators, including major crypto organisations and companies like Vodafone. According to Ariyasinghe, this integration has led to US$ 10.3 billion (AU$ 16.14 billion) data points on-chain, underpinning US$ 8.68 trillion (AU$ 13.6 trillion) in value exchanges in DeFi.
So we really have this kind of base, very strong, highly decentralised, highly secure and highly reliable network.
Additionally, ChainLink’s role in tokenised assets is significant, with the World Economic Forum estimating the broader market potential at US$ 867 trillion (AU$ 1.359 quadrillion). This development is recognised for its value across various sectors, including by major financial institutions like BNY Mellon.
“It Really Comes Back to Business Value”
Ariyasinghe strongly believes that the era of tokenisation is now firmly established, moving beyond the experimentation phase. A key aspect of tokenisation’s value lies in its capacity to operate financial markets continuously, 24/7, 365 days a year, unlike traditional markets like the Australian Stock Exchange or European fixed income markets which have specific closing times. This continuous operation could significantly increase market liquidity and velocity. Additionally, tokenisation opens up a range of use cases, notably in private debt through tokenised bonds and in real estate. In the Asia-Pacific region, efforts are underway to tokenise various real estate assets, including commercial and retail properties, and even individual homes.
Why is this important? Like, what is the actual business value of any of this? I think one of the key learnings that I’ve had over the last seven years in enterprise blockchain is people tend to focus on the tech, but ultimately if the tech is going to be deployed, it really comes back to business value.
Ariyasinghe noted the key benefits of tokenisation, including improved transaction integrity, automation efficiency, increased market liquidity, and enhanced transparency. However, he identified technical challenges like blockchain interoperability and integration into corporate systems as significant hurdles. ChainLink’s Cross-Chain Interoperability Protocol (CCIP) aims to address these challenges, enabling secure and reliable asset transfers across different blockchains and easing integration with corporate systems.