This post was originally published on The FinTech Times
Continuing the second phase of piloting its central bank digital currency (CBDC), Drex, the Central Bank of Brazil (BCB) has selected Brazilian digital bank Banco Inter, Microsoft Brazil, blockchain platform Chainlink, and 7COMm, a decentralised finance-focused firm, to build a trade finance solution.
The Central Bank of Brazil is aiming to demonstrate the automated settlement of agricultural commodity transactions across borders, across platforms, and via different currencies. By leveraging blockchain technology, the new solution will look to automate supply chain management and improve trade finance processes.
To enable this, Chainlink will use its Cross-Chain Interoperability Protocol (CCIP) to enable interoperability between Drex and foreign central banks, ensuring that transactions are compatible and settled efficiently.
Chainlink CCIP will offer valuable infrastructure for Drex, as well as other CBDCs and tokenised assets by enhancing liquidity through smooth token transfers across various blockchain networks. It says this approach can help expand market reach, enabling enterprises to access a wider blockchain ecosystem, while also streamlining the integration of blockchain technology with existing backend systems.
Angela Walker, global head of banking and capital markets at Chainlink Labs, said: “Chainlink CCIP is essential to enabling secure cross-border, cross-currency, and cross-chain transactions and will help showcase what tokenised assets can do at
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