Chainlink Announces CCIP Private Transactions, Enabling Financial Institutions To Compliantly Connect Private Chains to the Multi-Chain Economy

Chainlink’s novel CCIP Private Transactions capability, enabled by the new Chainlink Blockchain Privacy Manager, addresses long-standing compliance and confidentiality challenges around blockchain interoperability, paving the way for broader institutional blockchain adoption

SAN FRANCISCO, Oct. 22, 2024 /PRNewswire/ — Today, Chainlink announced CCIP Private Transactions, a privacy-preserving capability powered by the new Chainlink Blockchain Privacy Manager, which enables financial institutions to maintain data confidentiality, data integrity, and regulatory compliance when transacting across blockchain networks. Australia and New Zealand Banking Group (ANZ) will be among the first financial institutions to pilot the capability for cross-chain settlement of tokenized real-world assets (RWAs) under the Monetary Authority of Singapore (MAS) Project Guardian initiative.

Until now, a lack of secure cross-chain privacy has hindered financial institutions from meaningfully interacting across blockchain environments in a way that meets regulatory requirements, such as GDPR and MiFID II. These institutional requirements include the need for complete end-to-end privacy for private chain to private chain transactions, as well as limiting data exposure for private chain to public chain transactions. To address these industry challenges, Chainlink has launched CCIP Private Transactions, a new privacy-preserving capability enabled by the Chainlink Blockchain Privacy Manager. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is the industry standard for connecting both public and private blockchain ecosystems. 

With Chainlink’s newly announced Blockchain Privacy Manager, institutions can now connect private chains to other public and private blockchains leveraging the public Chainlink CCIP network, as well as connect existing TradFi and enterprise systems to private blockchains via the Chainlink Platform. This connectivity is achieved while only revealing the onchain information that is selected by the institution as being necessary to process each transaction, solving a longstanding privacy problem in the blockchain industry.

Using the Blockchain Privacy Manager, CCIP Private Transactions enables a novel onchain encryption and decryption protocol, enabling institutional cross-chain transactions across multiple private chains, while keeping the transaction details including data, token amounts, and counterparties entirely private. Chainlink’s new privacy capabilities allow institutional users to define privacy conditions in a way that keeps onchain data private from all third parties and adversaries, while enabling authorized parties in the transaction or the compliance industry to view that same data.

“Privacy is a critical requirement for most institutional transactions,” said Sergey Nazarov, Chainlink Co-founder. “So far the blockchain industry has not provided the level of privacy necessary for these institutional transactions to move forward successfully, limiting the growth of the entire industry. Now that private transactions across chains are possible, we expect an even greater influx of institutional adoption of blockchains, CCIP, and the Chainlink standard in general. We are excited to continue our collaboration with ANZ and explore how to make large transactions across multiple chains in a way that helps meet their compliance and legal requirements, enabling their entry into the market and the growth of the entire blockchain industry through their exciting participation.”

“Chainlink’s new cross-chain privacy capabilities have the potential to further accelerate institutional blockchain adoption by enabling end-to-end privacy between blockchain networks,” said Nigel Dobson, Banking Services Lead at ANZ. “Through our ongoing collaboration with Chainlink Labs, we are looking forward to piloting CCIP and demonstrating how this long-standing privacy problem can be addressed.”

ANZ and Chainlink previously demonstrated the cross-chain settlement of tokenized assets, showcasing how financial institutions can leverage Chainlink CCIP to provide their clients with the ability to trade and settle tokenized assets across public blockchains. 

About Chainlink

Chainlink has securely enabled over $16 trillion in transaction value and delivered more than 16+ billion verified messages onchain across the blockchain ecosystem. Major market infrastructure providers and institutional banks such as Swift, Fidelity International, and many others have collaborated with Chainlink to successfully demonstrate how financial institutions can use existing infrastructure and messaging standards to interact with tokenized assets across any blockchain.

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SOURCE Chainlink