Chainlink recently onboarded 21X, an EU-based firm preparing to launch a tokenized asset settlement system. Chainlink will offer its oracle services for reliable pricing data, bridging on-chain events with financial information.
In the past few months, Chainlink additionally researched business processes for fintech and trading companies, including investment banking giants. The on-chain oracle service aims to fetch data in ways that also lead to simpler business processes.
21X is preparing to launch a platform with Chainlink’s standard-setting approach to on-chain finance. Trading is not yet active but will operate under the regulation of the German financial authority, BaFin.
Chainlink will supply its Cross-Chain Interoperability Protocol (CCIP), which will help 21X settle assets from multiple chains. 21X considers stablecoins to be tokenized assets and will onboard stablecoins from multiple chains to offer to its clients.
The platform is expected to launch in Q1, 2025, immediately tapping data on listed products from Chainlink. With this partnership, Chainlink joins the regulated crypto asset in Europe, connecting all acceptable assets with the tokenized ecosystem of 21X.
21X will be one of the few fintech companies to operate under the proposed EU distributed ledger technology (DLT) legal framework. The fintech firm aims to offer tokenized stocks, bonds, and funds.
In addition to carrying tokens based on EU assets, 21X will bring contract-based issuance, trading, and settlement for those assets, as well as existing coins and tokens on selected public chains.
The EU has strict requirements for stablecoins, one of the most common types of tokenized assets. For stocks, bonds, or funds, the EU has a sandbox regulation. In the past, EU-based companies have tried to offer security tokens, though the influence of those assets has been limited.
LINK rallies ahead of December 10 announcement
More news is riling up the long-standing Chainlink community. In the coming week, Chainlink is expected to attend the Abu Dhabi Finance Week and sign a Memorandum of understanding (MOU) with key partners. The still-unannounced partners are causing speculations, even mentioning BlackRock’s Larry Fink as a potential representative.
Chainlink still carries more than 51% of all oracle services for crypto insiders and is making forays into the traditional financial ecosystem. Within crypto, Chainlink secures $37.29B in notional value, surpassing competitors like Chronicle and Pyth. Chainlink is also the most active oracle startup to research fintech companies and suggests solutions for pricing and trading data.
Chainlink is also tied to the usage of stablecoins, which have grown their influence in the past year. The CCIP cross-chain platform focuses on USDC usage, tapping the most heavily regulated stablecoin. CCIP targets DeFi, carrying GHO tokens, WETH, ETHx, and other niche tokens with multi-chain representation.
Chainlink (LINK) was one of the assets to rally as signs emerged of an active altcoin season. LINK moved above $23 on news of new integrations for its oracle services.
LINK is one of the older assets to rally into a new price range. LINK recovered above $23.21, the highest level since January 2022. LINK broke its 2024 record and expanded its daily volumes above $7B in 24 hours.
The spectacular recovery also led to a high turnover of LINK tokens, trading more than 50% of the supply in the past 24 hours. LINK follows the trend for older coins and tokens to rally, based on their high liquidity and reliable listings.
The LINK rally follows the lead of XRP, and the expansion of older utility projects, including IOTA, EOS, Tezos, and others. The Chainlink community has shown readiness for long-term holding, in expectation of LINK breaking to a higher price range.
LINK open interest is on track to break above $500M, repeating the peak from April 2024. LINK is expected to break its all-time high above $49, and then potentially move into price discovery above $100.
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