Chainlink Teams Up With Intercontinental Exchange To Bring FX and Precious Metals Data On-chain

Intercontinental Exchange, or ICE as it is commonly referred to, will supply Chainlink with foreign exchange (FX) and precious metals data from its ICE Consolidated feed to the Chainlink network, in an exciting new partnership.

Chainlink To Expand Services With New ICE Partnership

Chainlink recently partnered with the NYSE-parent Intercontinental Exchange to bring forex and precious metals data provided by ICE in its Consolidated Feed into the Chainlink Data Streams. The partnership will provide Chainlink Data Streams access to premium data that covers more than 150 currency pairs and the major traded precious metals (this includes gold, silver, platinum and palladium).

This is a major step for Chainlink as ICE’s Consolidated Feed aggregates market data from over 300 global exchange platforms and marketplaces. This massive amount of data will now power Chainlink Data Streams.

Chainlink says these feeds serve more than 2,000 decentralized applications (DApps) and financial institutions to cover market data needed to work in tokenized environments. The alliance will take a significant step from Chainlink towards bringing the traditional market infrastructure into the blockchain world.

A Major Step Forward for the DeFi Market and Tokenization of RWA

The Chainlink model combines the information of several suppliers, including ICE now, to generate one output that has been checked and is validated. This means that integrating one of the biggest data sources will greatly enhance the data quality available to decentralized finance (DeFi) protocols and other on-chain systems.

Chainlink can now get the trusted, structured multi-asset class data that big banks, asset managers and ISVs located around the world rely on, Maurisa Baumann, ICE’s Global Data Delivery Platforms VP said.

According to ICE, this integration is likely to accelerate the development of institutional-grade blockchain-based applications that demand low-latency and tamper-resistant market data, a consideration that is constant relative to automated settlements and high-value transactions.

In response, Fernando Vazquez, who heads up capital markets at Chainlink Labs, said that the partnership is indicative of Chainlink’s push to achieve a unified and globally accessible on-chain financial system. According to him, that makes Chainlink blockchain infrastructure poised to facilitate billions of dollars worth of assets being tokenized. 

Notably, Chainlink works to address institutional-quality standards to DeFi and the rapidly growing tokenization market. A forecast by Standard Chartered in June predicted that RWA market could reach higher than 30 trillion dollars by 2034. Chainlink is moving to take the lead in this emerging market.

Why This is Important for the Crypto Market

Chainlink’s use of the data provided by ICE also adds to its data standard, providing an on-chain experience capable of satisfying the very demanding standards of the traditional capital markets, and opening the door to a whole new line of institutional grade applications.

In this combination, Chainlink affirms its status as a dominant oracle service provider in crypto. Using quality FX and precious metals information, it is possible to develop new and more advanced DeFi applications. This does a lot to enhance security and reliability on DeFi, essential components that could drive the extension and adoption of the market.