SBI and Chainlink Connect Traditional Finance and DeFi Through Secure Tokenized Compliance

SBI Digital Markets, the institutional digital asset arm of Japan’s SBI Group, has implemented Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to strengthen its infrastructure for tokenized assets across different blockchains, according to

. This initiative is designed to create a secure and regulatory-compliant environment for moving tokenized financial instruments—including securities, cash, and tangible assets—between both public and private blockchain ecosystems, as reported by . The deployment utilizes CCIP’s Private Transactions capability to protect confidential information such as transaction values and counterparties, while also meeting compliance standards, according to .

This partnership broadens SBI Digital Markets’ platform into a full-scale digital asset center, enabling the issuance, settlement, and secondary trading of tokenized securities, according to

. By integrating CCIP, the company aims to connect traditional financial systems (TradFi) with decentralized networks, facilitating smooth liquidity movement between financial institutions and blockchain platforms, as noted by . This development follows earlier efforts such as Singapore’s Project Guardian, where SBI Digital Markets, UBS Asset Management, and Chainlink collaborated to automate fund management using blockchain, according to .

An important aspect of this alliance is Chainlink’s Automated Compliance Engine (ACE), which SBI Digital Markets is considering to apply dynamic, policy-driven compliance controls across various regions, according to FinanceFeeds. ACE is intended to simplify international transactions by ensuring legal compliance, cutting down operational delays, and lowering settlement risks, as Coinotag reports. The adoption also mirrors a wider industry movement toward interoperability solutions that resolve blockchain fragmentation while upholding high security standards, PR Newswire notes.

By embracing CCIP, SBI Digital Markets is positioning itself as a frontrunner in the tokenized asset sectors of Asia-Pacific and Europe, according to CryptoFrontNews. As the global appetite for tokenized securities rises, institutions are seeking robust infrastructure that merges innovation with regulatory compliance. SBI Group’s sustained commitment to blockchain-based finance—alongside Chainlink’s growing collaborations with organizations such as SWIFT, Mastercard, and Euroclear—demonstrates the transformative potential of tokenized assets in reshaping capital markets, BeInCrypto observes.

Industry analysts emphasize that interoperability protocols like CCIP are essential for widespread adoption. By shortening settlement periods from several days to mere minutes and reducing the costs of cross-border transfers, these solutions drive efficiency gains similar to those seen in Project Guardian, where blockchain processes delivered over 20% improvement in operations, PR Newswire reports. With tokenized securities expected to expand by 40% each year, Coinotag points out that SBI’s partnership with Chainlink highlights the pressing need for compliant, cross-chain solutions to unlock liquidity and broaden market access.