As the digital asset industry seeks the next phase of its evolution, one piece of infrastructure has established itself as the fundamental engine of global tokenization. A scenario where Chainlink projects its next big cycle, as its growth potential directly depends on being the reliable bridge between traditional finance and cryptocurrency.
The adoption of this infrastructure directly benefits its native token, LINK, as the token is the means of payment, security guarantee, and value reserve mechanism of the protocol.
Since its inception, Chainlink's initial solution consisted of creating decentralized oracle networks to obtain, aggregate, and distribute market data in cryptocurrency networks. This proposal quickly made it the dominant oracle provider in the ecosystem, assures Messari, a data analysis and research platform.
A report from that firm highlights that, at the beginning of October, Chainlink managed over 100 billion dollars in DeFi. Additionally, it controls 69.9% of the total oracle market.
Currently, tokenized RWAs require data standards, interoperability, compliance, and privacy, requirements that are provided by Chainlink's infrastructure, explains Messari.
In fact, many of the most important RWA initiatives, such as Ondo and xStocks, already rely on Chainlink to ensure the integrity of data and assets. According to Messari, "the deepening of the adoption of standardized infrastructures like Chainlink is inevitable as institutional participation in tokenized markets intensifies."
The Chainlink reserve
This broader scope also redefines the role of LINK, the network's token. Launched in 2017, it currently serves as a payment unit for oracle services, staking, and node incentives. The circulating market capitalization and price of LINK show an increase of 10.4% and 3.9%, respectively, so far this year.
The Build program supports emerging and established projects within the ecosystem, providing them greater access to Chainlink's services and technical support.
Chainlink has evolved into a multi-standard infrastructure with five key categories: data, interoperability, regulatory compliance, privacy, and orchestration, details the Messari report.
Market demand now spans from high-frequency price feeds to the management of funds that comply with institutional regulations. Chainlink's infrastructure and presence cover the entire spectrum of on-chain finance.
Among its strategic alliances in TradFi are: JP Morgan (Kinexys), UBS, Swift, Mastercard, Fidelity International, and WisdomTree, highlights Messari.
Chainlink facilitates cross-chain asset settlement with banks like JP Morgan and UBS. It also enables institutions to connect to public or private networks via Swift. These integrations highlight its role as a link between fragmented systems.
