Chainlink, a prominent platform for on-chain finance, has recently announced an exclusive development for the banking sector. As per Chainlink, the Brazilian Central Bank is using a joint CBDC endeavor that takes into account contributions from itself, Banco Inter, 7Comm, and Microsoft. The platform took to its official social media account to disclose this development.
We’re excited to announce that Brazil’s central bank @BancoCentralBR is using Chainlink in its CBDC project, alongside @Microsoft (@msPartner), @interbr, & 7COMm.
CCIP enables cross-currency, cross-border, cross-chain transactions to be settled securely
https://t.co/7aBGtHh3mt
— Chainlink (@chainlink) November 19, 2024
Chainlink, Banco Inter, 7Comm, and Microsoft Join to Offer a CBDC Project to the Brazilian Central Bank
Chainlink mentioned that its joint CBDC project in collaboration with Microsoft, 7Comm, and Banco Inter is serving the Central Bank of Brazil. It focuses on developing a solution for trade finance as included in the 2nd phase of Brazil’s DREX pilot project. DREX is the digital currency of the country. The respective solution uses blockchain technology as well as oracles for the automatic management of the supply chain. It also endeavors to refine the trade finance procedures. The objective is to execute commodity transfers’ automated settlement across platforms, across borders, and through diverse currencies.
The Cross-Chain Interoperability Protocol of Chainlink will reportedly offer interoperability linking Brazil’s Central Bank’s DREX and the foreign central banks. This guarantees that transfers possess compatibility and efficient settlement. The pilot will include the on-chain tokenization of an Electronic Bill of Lading. It will additionally utilize supply chain statistics to ignite deliver disbursements to exporters during the shipping procedure.
The solution will display the significant role of blockchain-based trade finance in unlocking Payment versus Payment and Delivery versus Payment. It will guarantee enhanced efficiency in the worldwide supply chain, and transparency and security for the agricultural commodities’ international trade.
Chainlink CCIP is set to provide valuable infrastructure to facilitate DREX and the rest of the CBDCs and tokenized assets. For this purpose, it is going to increase liquidity by leveraging streamlined token transactions across diverse blockchain networks. The respective approach can assist broaden market access by letting enterprises reach a wider blockchain ecosystem.
The Initiative Denotes Blockchain Adoption and Chainlink CCIP’s Potential to Revolutionize Trade Finance
According to Angela Walker, Chainlink Labs’ Global Head of Banking and Capital Markets, the platform looks forward to working with the Brazilian central bank, Microsoft, and Bank Inter. This would reportedly demonstrate blockchain adoption and Chainlink’s CCIP’s potential to revolutionize trade finance.
