Wall Street banks will establish their own blockchain and cross-chain stablecoin.

Wall Street banks to launch own blockchain and stablecoin.

Author: Billy Bambrough, Forbes; Translation: Song Xue, LianGuai

Despite the shocking predictions of the CEO of BlackRock, major cryptocurrencies such as BTC, ETH, XRP, etc. are currently in a consolidation phase.

Since the beginning of 2023, the price of Bitcoin has doubled, driving the total market value of Bitcoin, Ethereum, XRP, and the cryptocurrency market to exceed 1 trillion US dollars again.

Now, a widely respected cryptocurrency developer has outlined how he sees the blockchain industry growing “very, very rapidly to trillions of dollars” as Wall Street giants increasingly focus on blockchain technology.

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Sergey Nazarov, co-founder of the Chainlink blockchain network, pointed out during the Ethereum Community Conference in Paris, “You have a public blockchain and contract internet defined mainly by DeFi (decentralized finance), as well as a banking chain world, and I think it will be defined mainly by tokenized real-world assets. The next stage will allow these two worlds to overlap.”

Nazarov predicts that Wall Street banks will establish their own blockchains and cross-chain stablecoins, connecting them using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which is currently in the early access stage. According to the Chainlink Foundation, the protocol is designed as an “open-source global standard for decentralized blockchain messaging, data, and token movement.”

Nazarov said, “When this happens, you will see the entire blockchain industry, I think, growing very, very rapidly, growing to trillions of dollars, in addition to the efficiency and profits of each group.”

Update: As the two-day Federal Reserve interest rate decision meeting is about to begin, the prices of Bitcoin and other major cryptocurrencies have plummeted, and the meeting will be announced tomorrow.

Yuya Hasekawa, a cryptocurrency market analyst at Bitbank, commented in an email, “Bitcoin has been trading in a narrow range for a little over a week, and it is likely to continue until the end of this week’s Federal Open Market Committee (FOMC) meeting.” “The market has almost fully digested the expectation that the Federal Reserve will raise interest rates by 25 basis points again this week and is closely watching whether they will raise rates again before the end of this year, as implied by the economic outlook before the FOMC.”

However, Dogecoin, the Bitcoin competitor favored by Tesla billionaire Elon Musk, has risen against the trend in the cryptocurrency market as traders continue to bet that Musk will try to integrate cryptocurrencies into his renamed Twitter app, X, in an attempt to create a social and financial super app.

CCIP has been tested on the global banking messaging network Swift, which may allow encrypted cryptocurrency transfers between public and private chains through Swift’s messaging infrastructure.

Nazarov said that Chainlink, a node network that provides data and information from outside the blockchain to smart contracts on the blockchain, is “ready to launch a pilot.” Nazarov said, “If we go ahead with the pilot and actually transfer value between different bank chains, the sky is the limit.”

Bitcoin price has recovered from the crash in 2022

The cryptocurrency price crash in 2022 caused Bitcoin, Ethereum, XRP, and the overall cryptocurrency market to lose about $2 trillion, causing panic among investors who have heavily invested in the cryptocurrency field, echoing market cycles of the past decade.

However, last month, BlackRock, the world’s largest asset management company, began a comprehensive race to enter the US market, indicating that Wall Street’s interest in Bitcoin and cryptocurrency prices in the winter of 2022 continues to exist.

Nazarov said, “This is the first time after four cycles that banks haven’t lost interest [after a price crash], and I think the reason it hasn’t happened is that their customers want something blockchain-related.” He referred to French banking giant Societe Generale recently developing a stablecoin and putting it on the public blockchain.

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