Chainlink Poised to Power TradFi Shift to Blockchain, Jefferies Says

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

The decentralized oracle network connects smart contracts to real-world data and off-chain systems, enabling advanced use cases like tokenized asset settlement, parametric insurance and cross-chain messaging.

Jefferies said LINK (LINK), Chainlink’s native token, will benefit as tokenization accelerates.

As of September, Chainlink secured $103 billion in assets through its oracle feeds, up from $23 billion in early 2024, supporting over 2,500 projects. Partnerships with institutions such as Swift, DTCC, Euroclear and JPMorgan (JPM) underscore its role in bridging crypto and TradFi, wrote analysts Andrew Moss and Matthew Molta.

Tokenization, 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) address this challenge, supporting real-time settlement and automation across finance, insurance, and supply chains, the analysts wrote.

Jefferies said digital asset adoption remains early, but tokenization pilots are moving quickly toward production. With LINK used to pay for services, node operations and staking, growing demand for Chainlink’s infrastructure could provide token holders a call on future cash flows.

While rivals like LayerZero and Pyth exist, Chainlink’s network effects and first-mover advantage may give it a durable moat in blockchain infrastructure, the bank said.

The analysts estimated that tokenized asset value has reached $30 billion excluding stablecoins, a 253% increase year to date.

As tokenization reduces operational costs and increases liquidity, Jefferies said it expects institutional investors to migrate toward blockchain-based settlement layers, placing Chainlink at the center of the transition.