Following a call with ChainLink co-founder Sergey Nazarov, an investment bank Jefferies report says Chainlink could become the foundational layer of traditional finance as capital markets increasingly embrace blockchain infrastructure.
A decentralized Oracle network connects smart contracts to real data and off-chain systems, enabling advanced use cases such as tokenized asset payments, parametric insurance, and cross-chain messaging.
Jeffries said that the link (link), the native token of chain links, will benefit as tokenization accelerates.
As of September, ChainLink had secured $100 billion in assets through Oracle Feeds, which supports more than 2,500 projects from $23 billion in early 2024. Partnerships with institutions such as Swift, DTCC, Euroclear and JPMorgan (JPM) highlight their role in the bridge between Crypto and Tradfi, written by analysts Andrew Moss and Matthew Molta.
Tokenization, which converts real-world assets into programmable digital tokens, drives the demand for infrastructures that can safely link on-chain and chain-off-chain environments. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Decentralized Oracle Networks (DONS) address this challenge and support real-time payments and automation across finance, insurance and supply chains.
Jefferies said adoption of digital assets remains early, but tokenization pilots are moving rapidly towards production. Increased demand for links, node operations, staking and ChainLink infrastructure used to pay for services allows token holders to make calls about future cash flows.
While rivals like Layerzero and Pyth exist, the bank says ChainLink’s network effects and first-mover advantage could provide a durable moat for blockchain infrastructure.
Analysts estimated to have a tokenized asset value of $30 billion excluding Stablecoins, an increase of 253% per year.
As symbolism reduces operational costs and increases liquidity, Jeffries said he hopes institutional investors will move to the blockchain-based payments tier, placing chain links at the heart of the transition.
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