Chainlink to Play Key Role in Bringing Traditional Finance to Blockchain, Analyst Says

Chainlink Emerging as Key Infrastructure for TradFi Blockchain Integration, Jefferies Says – 29/9/2025

Chainlink is positioned to become a central infrastructure layer for traditional finance as capital markets increasingly adopt blockchain technology, according to a report by Jefferies following a call with co-founder Sergey Nazarov.

The decentralized oracle network links smart contracts with real-world data and off-chain systems, enabling applications such as tokenized asset settlements, parametric insurance, and cross-chain messaging. Jefferies highlighted that Chainlink’s native token, LINK, could see growing demand as tokenization expands.

As of September, Chainlink’s oracle feeds secure $103 billion in assets across more than 2,500 projects, up from $23 billion earlier in 2024. Partnerships with major institutions including Swift, DTCC, Euroclear, and JPMorgan underscore Chainlink’s role in bridging the gap between crypto and traditional finance, analysts Andrew Moss and Matthew Molta noted.

Tokenization—converting real-world assets into programmable digital tokens—is driving demand for infrastructure capable of securely connecting on-chain and off-chain environments. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Decentralized Oracle Networks (DONs) support real-time settlement and automation across finance, insurance, and supply chains.

Jefferies noted that digital asset adoption remains early, but tokenization pilots are quickly 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 for Chainlink’s network grows.

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

With tokenization reducing operational costs and increasing liquidity, Jefferies expects institutional investors to migrate toward blockchain-based settlement layers, positioning Chainlink at the center of this transformation.