Chainlink Poised to Power TradFi Shift to Blockchain, Jefferies Says

Chainlink could become a foundational layer for traditional finance as capital markets increasingly embrace blockchain infrastructure, according to a report from investment bank Jefferies following a call with Chainlink co-founder Sergey ￰0￱ decentralized oracle network connects smart contracts to real-world data and off-chain systems, enabling advanced use cases like tokenized asset settlement, parametric insurance and cross-chain ￰1￱ said LINK (LINK), Chainlink’s native token, will benefit as tokenization ￰2￱ of September, Chainlink secured $103 billion in assets through its oracle feeds, up from $23 billion in early 2024, supporting over 2,500 ￰3￱ with institutions such as Swift, DTCC, Euroclear and JPMorgan (JPM) underscore its role in bridging crypto and TradFi, wrote analysts Andrew Moss and Matthew Molta.

Tokenization, converting real-world assets into programmable digital tokens, is driving demand for infrastructure that can securely link on-chain and off-chain environments. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Decentralized Oracle Networks (DONs) address this challenge, supporting real-time settlement and automation across finance, insurance, and supply chains, the analysts ￰4￱ said digital asset adoption remains early, but tokenization pilots are moving quickly toward ￰5￱ LINK used to pay for services, node operations and staking, growing demand for Chainlink’s infrastructure could provide token holders a call on future cash ￰6￱ rivals like LayerZero and Pyth exist, Chainlink’s network effects and first-mover advantage may give it a durable moat in blockchain infrastructure, the bank ￰7￱ analysts estimated that tokenized asset value has reached $30 billion excluding stablecoins, a 253% increase year to ￰8￱ tokenization reduces operational costs and increases liquidity, Jefferies said it expects institutional investors to migrate toward blockchain-based settlement layers, placing Chainlink at the center of the ￰9￱ more: Polymarket Connects to Chainlink to Cut Tampering Risks in Price Bets