Chainlink Introduces Private Blockchain Transactions for Banks

One of the first banks to try this new system is ANZ Bank from Australia and New Zealand.

They will use Chainlink’s privacy-preserving tech to settle tokenized real-world assets as part of Singapore’s Project Guardian.

New Privacy Features

On October 22nd, Chainlink introduced two key privacy features for financial institutions. The first is called the Blockchain Privacy Manager , which allows private blockchains to connect with the public Chainlink Platform. This means that banks can link their private systems with other blockchains while keeping their data secure.

The second feature is an encryption method called CCIP Private Transactions . This tool lets banks encrypt sensitive information. For example: How much money is being transferred and who is involved in the transaction. So, while they’re doing business, they can ensure that their private information stays private.

We’re excited to announce CCIP Private Transactions, enabling financial institutions to connect private blockchains to the multi-chain economy.

Australia and New Zealand Banking Group (ANZ) will be among the first financial institutions to pilot the capability for cross-chain… pic.twitter.com/1Qmm9nURqz

— Chainlink (@chainlink) October 22, 2024

ANZ Bank will be one of the first institutions to test out these new privacy features. They plan to use Chainlink’s technology for the cross-chain settlement of tokenized real-world assets. In simpler terms, this means banks will be able to trade real-world items, like property or stocks, in a secure way on the blockchain.

By using Chainlink’s Blockchain Privacy Manager, ANZ Bank can easily connect its private blockchain with the public Chainlink network, giving it the best of both worlds.

Why Privacy Matters

In today’s digital age, keeping information secure is more important than ever. As the saying goes, “Loose lips sink ships”—meaning that sharing too much can lead to problems.

Here’s how it works:

The new Blockchain Privacy Manager enables private blockchains to integrate with the public Chainlink Platform, while maintaining data confidentiality and supporting regulatory compliance.

With this new capability, financial institutions can now leverage… pic.twitter.com/V7FdbaTDLX

— Chainlink (@chainlink) October 22, 2024

Chainlink’s new privacy tools allow banks to set specific privacy rules, so only authorized people can see the data they need while keeping everything else under wraps. This ensures that sensitive information is protected from prying eyes.

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