Chainlink Unveils New CCIP Private Transactions Feature for Financial Institutions

Chainlink has launched CCIP Private Transactions, a new privacy-preserving feature powered by blockchain technology that aims to enable financial institutions to maintain data privacy, integrity, and regulatory compliance when conducting cross-chain transactions. In its announcement, Chainlink said the development addresses pressing privacy concerns that have so far limited institutions’ participation in blockchain ecosystems due to the need for secure, private transactions.

An early adopter of the technology is the Australia and New Zealand Banking Group (ANZ), which will pilot the capability as part of the Monetary Authority of Singapore’s (MAS) Project Guardian. The project focuses on cross-chain settlement of tokenized real-world assets (RWAs), highlighting a use case that is compliant with regulatory standards such as GDPR and MiFID II.

Previously, financial institutions have been hesitant to engage with blockchain due to the lack of privacy solutions for cross-chain transactions. The rules require end-to-end privacy for interactions between private blockchains, as well as limited data disclosure when transactions involve public blockchains. Chainlink said its CCIP Private Transactions aims to address this issue by providing a new encryption and decryption protocol that keeps transaction details private, including data, token amounts, and counterparties involved.

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