TradFi’s Shift to Blockchain Could Be Fueled by Chainlink, According to Jefferies

Chainlink Positioned to Drive Blockchain Adoption in Traditional Finance, Jefferies Says – 29/9/2025

Chainlink is emerging as a key infrastructure layer for traditional finance as capital markets increasingly integrate blockchain, according to a report by Jefferies following a discussion 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, could benefit from accelerating tokenization.

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 conversion of real-world assets into programmable digital tokens—is increasing demand for infrastructure that reliably connects on-chain and off-chain systems. 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 is still in early stages, 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.

Despite competition from platforms like LayerZero and Pyth, Chainlink’s first-mover advantage and network effects could provide a durable edge in blockchain infrastructure. Analysts estimate tokenized assets—excluding stablecoins—now total $30 billion, a 253% increase year-to-date.

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