Chainlink and ANZ Collaborate on Private Transactions for Tokenized Real-World Assets

Chainlink launched CCIP Private Transactions, an advanced privacy solution designed to address the needs of financial institutions. This new feature, powered by Chainlink's Blockchain Privacy Manager, allows institutions to maintain data confidentiality, integrity, and regulatory compliance when conducting cross-chain transactions. 

Australia and New Zealand Banking Group (ANZ) is among the first to pilot this technology under Singapore’s Project Guardian initiative, which aims to advance tokenized real-world assets (RWAs).

"The lack of adequate privacy has held back institutional use of blockchain technology," Chainlink co-founder Sergey Nazarov said. "With CCIP Private Transactions, we expect to see more large-scale transactions and an increase in institutional blockchain adoption."

Solving Blockchain’s Privacy Problem

One of the key barriers to institutional adoption of blockchain technology has been the lack of secure privacy mechanisms for cross-chain transactions, according to Chainlink. 

Institutions need full end-to-end privacy for transactions between private blockchains, as well as limited data exposure when interacting with public chains. These privacy requirements are crucial for meeting stringent regulations such as GDPR and MiFID II. Until now, blockchain ecosystems have struggled to meet these regulatory needs.

Chainlink's new CCIP Private Transactions aim to solve this problem by enabling secure, confidential transactions across multiple blockchain networks. 

Using the Blockchain Privacy Manager, institutions can reportedly conduct private chain-to-private chain transfers or connect their private chains with public ones, while exposing only the minimum required information to process each transaction.

How CCIP Private Transactions Work

The newly introduced Blockchain Privacy Manager uses an on-chain encryption and decryption protocol. This allows institutions to carry out cross-chain transactions with full privacy, keeping transaction details—such as token amounts and counterparties—completely hidden from unauthorized parties. 

Only authorized individuals or regulatory bodies can access the relevant data, ensuring both privacy and compliance.

Chainlink's Cross-Chain Interoperability Protocol (CCIP), already an industry standard for connecting blockchain networks, is at the core of this new feature. It allows financial institutions to interact between private and public blockchains without sacrificing privacy. This enables the integration of traditional financial systems with blockchain technology, allowing tokenized RWAs to be settled securely and efficiently.

ANZ, one of the first financial institutions to pilot this new feature, expressed optimism about its potential. Nigel Dobson, Banking Services Lead at ANZ, believes that the privacy capabilities introduced by Chainlink could accelerate the adoption of blockchain among institutional users. 

In a statement, he noted:

"We are excited to pilot CCIP and demonstrate how these privacy concerns can be resolved, paving the way for broader institutional blockchain adoption."

Chainlink’s Broader Ecosystem Growth

This announcement comes as Chainlink continues to expand its influence within the blockchain space. Recent milestones include the integration of its Proof of Reserve feature on the Solana and Ethereum mainnets to improve transparency and security for wrapped Bitcoin tokens. Chainlink has also partnered with ZKsync and Coinbase’s Base network to enable cross-chain token transfers and enhance DeFi capabilities.