Chainlink’s native token, LINK, has seen a huge price increase after the announcement of a new partnership to tokenize securities in Europe.
The price of LINK has gone up by over 36%, reaching its highest point in almost two years, topping $26 during late trading on December 2.
In just one month, the price of LINK has more than doubled, rising from under $11 in early November to over $26 now. Most of this increase happened in the past few hours.
By Tuesday morning in Asia, the price had slightly dropped to just above $24, according to Coingecko.
Chainlink Partners With 21X
On December 2, Chainlink and 21X, a fintech company based in Frankfurt, announced a partnership to create Europe’s first EU-regulated financial market for tokenized securities. The platform is planned to launch in the first quarter of 2025 and will be supervised by Germany’s Federal Financial Supervisory Authority (BaFin).
Chainlink’s technology will be used for several important tasks. These include providing secure and accurate price data for listed products, allowing different blockchains to work together through Chainlink’s Cross-Chain Interoperability Protocol (CCIP), and making it easier to access assets and stablecoins on multiple blockchain networks.
We're excited to announce Europe’s first tokenized securities trading & settlement system—21X (@tradeon21x)—is adopting the #Chainlink standard.
— Chainlink (@chainlink) December 2, 2024
Price Feeds will underpin 21X’s trading engine & CCIP will connect it to assets across the onchain economy: https://t.co/ACGrBKuduL pic.twitter.com/BYKSBGUFp8
Max Heinzle, the founder and CEO of 21X, praised the partnership, saying they were setting up “everything needed to launch Europe’s first tokenized securities market infrastructure under the EU’s DLT Regime.”
The goal of the partnership is to help institutions adopt tokenized securities. This will allow stocks, bonds, and funds to be issued, traded, and settled using smart contracts.
Angie Walker, the Global Head of Banking and Capital Markets at Chainlink Labs, said:
By using the Chainlink standard, 21X will make sure its system for matching and settling trades relies on very accurate and trustworthy market data. Meanwhile, CCIP will allow users to access a wide range of assets from the entire digital asset world.
Deeper Ties With TradFi
On December 3, Chainlink shared a tweet about a blog post from November, where they talked about their progress working with traditional financial institutions and banks. This may have helped boost their momentum.
Some of the big financial companies they have partnered with include Swift, JPMorgan, Citi Group, Franklin Templeton, Fidelity, Lloyds, ANZ Bank, and BNY Mellon.
⬡ Swift
— Chainlink (@chainlink) December 2, 2024
⬡ Depository Trust and Clearing Corporation (DTCC)
⬡ Euroclear
⬡ Clearstream
⬡ Central Bank of Brazil
⬡ JP Morgan
⬡ State Street
⬡ UBS
⬡ BNY Mellon
⬡ Citi
⬡ BNP Paribas
⬡ Edward Jones
⬡ Franklin Templeton
⬡ Wellington Management
⬡ Invesco
⬡ Fidelity… pic.twitter.com/IXVzfCt3Vz
Ecosystem ambassador Zach Rynes mentioned that LINK is more like a “bank coin” compared to XRP.
He explained that Ripple often takes well-known ideas, rebrands them, and presents them as something completely new. He also pointed out Chainlink’s connections to traditional finance (TradFi) in another post on X.
