Chainlink Positioned as Key Infrastructure for TradFi Blockchain Shift, Jefferies Says – 29/9/2025

Chainlink could emerge as a foundational layer for traditional finance as capital markets increasingly adopt blockchain infrastructure, according to a report from investment bank Jefferies following a call with Chainlink co-founder Sergey Nazarov.

The decentralized oracle network links smart contracts to real-world data and off-chain systems, enabling advanced applications such as tokenized asset settlement, parametric insurance, and cross-chain messaging. Jefferies highlighted that Chainlink’s native token, LINK (LINK), stands to benefit as tokenization accelerates.

As of September, Chainlink secures $103 billion in assets via its oracle feeds—up from $23 billion in early 2024—supporting more than 2,500 projects. Partnerships with major institutions including Swift, DTCC, Euroclear, and JPMorgan underscore its role in bridging crypto and traditional finance, analysts Andrew Moss and Matthew Molta wrote.

Tokenization, which converts real-world assets into programmable digital tokens, is driving demand for infrastructure that securely connects 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 digital asset adoption remains in its early stages, but 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 demand grows.

While competitors such as LayerZero and Pyth exist, Jefferies said Chainlink’s first-mover advantage and network effects may provide a durable moat in blockchain infrastructure. Analysts estimate the value of tokenized assets has reached $30 billion—excluding stablecoins—a 253% increase year to date.

With tokenization reducing operational costs and boosting liquidity, Jefferies expects institutional investors to increasingly adopt blockchain-based settlement layers, positioning Chainlink at the center of the transition.