Chainlink Positioned to Lead Traditional Finance’s Blockchain Integration, Says Jefferies

Chainlink Set to Power TradFi Blockchain Transition, Jefferies Says – 29/9/2025

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

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

As of September, Chainlink’s oracle feeds secure $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 demonstrate its growing role in bridging traditional finance with blockchain, analysts Andrew Moss and Matthew Molta noted.

Tokenization—turning real-world assets into programmable digital tokens—is driving demand for infrastructure that can reliably connect 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 said digital asset adoption is still early, but tokenization pilots are rapidly moving toward production. LINK is used to pay for services, run nodes, and stake, offering token holders exposure to potential future cash flows as demand grows.

While competitors like LayerZero and Pyth exist, Chainlink’s first-mover advantage and network effects may give it a durable edge in blockchain infrastructure. Analysts estimate tokenized asset value—excluding stablecoins—has reached $30 billion, up 253% year to date.

With tokenization lowering operational costs and increasing liquidity, Jefferies expects institutional investors to increasingly migrate to blockchain-based settlement layers, positioning Chainlink at the heart of the shift.