Chainlink Positioned to Power TradFi’s Blockchain Adoption, Jefferies Says – 29/9/2025
Chainlink could become a foundational infrastructure layer for traditional finance as capital markets increasingly integrate blockchain technology, according to a Jefferies report following a call with co-founder Sergey Nazarov.
The decentralized oracle network connects smart contracts with real-world data and off-chain systems, enabling applications such as tokenized asset settlement, parametric insurance, and cross-chain messaging. Jefferies highlighted that Chainlink’s native token, LINK, stands to benefit as tokenization accelerates.
As of September, Chainlink secures $103 billion in assets across more than 2,500 projects, up from $23 billion in early 2024. Partnerships with major institutions, including Swift, DTCC, Euroclear, and JPMorgan, underscore its growing role in bridging crypto and traditional finance, analysts Andrew Moss and Matthew Molta noted.
Tokenization—the process of converting real-world assets into programmable digital tokens—is driving demand for infrastructure that can securely link on-chain and off-chain environments. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Decentralized Oracle Networks (DONs) facilitate real-time settlement and automation across finance, insurance, and supply chains.
Jefferies noted that while digital asset adoption remains in early stages, tokenization pilots are rapidly moving toward production. LINK is used to pay for services, operate nodes, and stake, giving token holders potential exposure to future cash flows as network demand grows.
Despite competitors such as LayerZero and Pyth, Chainlink’s first-mover advantage and network effects may provide a durable edge in blockchain infrastructure. Analysts estimate the value of tokenized assets—excluding stablecoins—has reached $30 billion, a 253% increase year to date.
As tokenization reduces operational costs and improves liquidity, Jefferies expects institutional investors to increasingly adopt blockchain-based settlement layers, positioning Chainlink at the center of the transition.
