How does Chainlink unlock the full potential of tokenizing capital markets through CCIP and stake?

This article introduces the Chainlink staking and CCIP functions, how will these two important changes affect the tokenization of traditional assets? Learn more about important trends in this article by Ryan Lovell at SmartCon Hong Kong. (Synopsis: Diverting 100 trillion dollars to parachute web3, one article to understand Chainlink's huge ambition to lay out the TradFi track) (Background supplement: Meet the 867 trillion magnesium traditional institution tokenization business opportunity!) Chainlink Hong Kong "SmartCon" kicks off TradFi's first battle Decentralization oracle Chainlink is the core infrastructure required by Capital Market to promote tokenization from the proof-of-concept stage to the production stage. Chainlink's role in supporting the Capital Market is necessary for three key tokenization use cases: Implementing a Secondary Market for tokenized assets by allowing them to be Settled on any Block chain (public or private). Facilitate delivery and payment (DvP) workflows by performing single-chain or Cross-Chain Interaction atomic transactions, as well as ensuring the irrevocable exchange of assets between Block chains. By supporting the communication between the traditional infrastructure and the block chain, the on-chain and off-chain systems are synchronized. Next, we'll explore the current state of tokenization in the Capital Market, introduce Chainlink, and then look at real-world examples of how Financial Institutions can leverage Chainlink to unlock the full potential of tokenization. The current state of tokenization Since 2017, tokenization efforts in the Capital Market are mostly still in the proof-of-concept stage. While some institutions have announced the tokenization of traditional assets, such as bonds, these experiments have focused on the initial issuance of the asset. For example, an investment bank that is an asset issuance might tokenize a bond note, acquire it, and quickly mature the note. Other successful use cases, particularly those related to banking and financial transactions, such as Broadridge's DLR and HQLAx, are application-specific and are managed by a single central entity. Both examples highlight a common problem: friction caused by the lack of seamless connectivity between ecosystems and applications. In particular, it is worth noting that asset managers and asset owners have been relatively absent in terms of active engagement, although they are critical to creating adequate liquidity. Their participation requires a strong enterprise-grade infrastructure to establish the necessary connections to facilitate the formation of a Secondary Market. This interoperability infrastructure should integrate seamlessly into existing internal systems without significant disruption. Ultimately, each additional link will enhance the overall utility of Block-based financial products. Chainlink: Connecting Existing Infrastructure with the Block Chain Network Chainlink is enterprise-grade infrastructure that enables Financial Institutions to establish the necessary connections between the on-chain and the existing infrastructure (off-chain). If your existing technology stack requires a "Block chain operation", simply integrate it with Chainlink to connect with public and private Block chains. Chainlink provides a trap service to facilitate the transmission of data and tokens between the Block chain, realize two-way communication between the Block chain and external systems, and use a variety of computing services such as privacy and automation. Three Chainlink services that are particularly relevant to tokenization in the Capital Market include: Cross-Chain Interaction Interoperability Protocol (CCIP) – This is a Block Chain Interoperability protocol that acts as an abstraction layer and a Cross-Chain Interaction messaging protocol. Enables existing infrastructure to communicate with any public or private Block chain and instructs Smart Contract to send arbitrary data and transfer tokens between Block chains. Proof of Reserve - A Decentralization network that verifies or attests to cross-chain interactions or off-chain reserves that support tokenized assets, providing a transparent on-chain audit trail for consumers, asset issuance parties, and Smart Contract-based applications. Functions - Institutions can service any asset of any Blockon-chain by synchronizing off-chain events or data with on-chain operations. Any off-chain event or data, such as Holdings Settlement orders, corporate actions, proxy voting, ESG data, dividends and interests, and net asset value, can be synchronized. How does Chainlink unlock the full functionality of Capital MarketTokenization? Chainlink has successfully realized over $8 trillion in transaction value for Block chain applications. The superior security standards for Chainlink networks are pioneered by a world-class research team and enforced by independent, Sybil attack-resistant Nodes of Decentralization oracle networks (DONs) operated by leading companies such as Deutsche Telekom MMS, LexisNexis and Swisscom. Chainlink has adopted a Depth approach to development, maintaining high availability and tamper-proof security over the years, even in the industry's most volatile and unpredictable situations. Real-world use cases for tokenization implemented by chainlink The following sections are divided into three use cases: Secondary Market, DvP, and on-chain/off-chain synchronization. Secondary Market Secondary Market is essential to the efficient operation of Capital Market. They facilitate liquidity and price discovery by providing a platform for investors to buy and sell previously issuance's financial instruments. Currently, financial markets utilize central securities depositories (CSDs) and custodian banks to maintain records of securities holdings. These securities can be freely transferred from one custodian bank to another through a trap of message standards from various front, middle and back office systems. This interconnected infrastructure not only supports the operation of the Secondary Market, but also contributes to the overall stability and resilience of the global financial system. Chainlink implements Secondary Market for tokenized assets in three different ways: 1. Connect buyers and sellers on different Block Chain platforms Most bonds and non-Liquidity assets are traded through the over-the-counter market because of their heterogeneous nature. In order for the tokenization of bonds and non-Liquidity assets to reach production, the same Liquidity platforms (such as MarketAxess and TradeWeb) need to be able to list these tokens from market makers' inventories or allow them to set prices. One component of market makers' price setting is based on Liquidity risk – how quickly can they sell inventory in order to clear the books at the end of the trading day? To maximize liquidity and achieve attractive pricing differentials that match or improve on traditional issuance assets, tokenized assets must be able to be able to use any Blockon-chainSettlement that asset managers and owners wish to use. Role of Chainlink: Chainlink CCIP provides the Financial Institution with a single integrated gateway for communicating with any public or private block chain. Chainlink CCIP enables tokenized assets to be available on any Blockon-chain, transforming them from single-chain assets to any-chain assets. Chainlink CCIP promotes secure Cross-Chain Interaction DvP Settlement through atomic transactions. How does Chainlink unlock the full functionality of Capital MarketTokenization? Example workflow utilizing Chainlink CCIP: Asset manager A needs to sell BondToken, which is currently issuance on public chain 1 and is managed by a fund...