Asset tokenization is expected to accelerate capital flows in traditional markets, as noted by Chainlink’s co-founder Sergey Nazarov. Nazarov highlighted the potential for increased capital velocity in asset classes like treasuries, equities, private credit, commercial debt, and real estate during an interview at Consensus 2025 in Toronto. He emphasized the importance of having high-quality assets onchain and seamless payment systems for existing institutions. This discussion coincided with Chainlink’s partnership announcement with Kinexys, a blockchain network catering to institutional-grade tokenized assets, alongside JP Morgan and Ondo Finance. Together, they aim to establish payment rails for institutions engaging in onchain trading of tokenized real-world assets. The collaboration involved testing the exchange of Ondo’s US Government Treasuries Fund (OUSG) using Chainlink’s Runtime Environment, a framework for integrating legacy financial systems with blockchains. Nazarov expressed Chainlink’s vision to drive a positive cycle for the industry by bringing more assets and payment systems onchain. This partnership reflects the growing institutional acceptance of cryptocurrencies and Web3 technologies following favorable regulatory changes post-2024 elections in the United States and the resignation of Gary Gensler, the former chair of the US Securities and Exchange Commission (SEC). Chainlink’s Runtime Environment serves as a decentralized oracle network facilitating connections between smart contracts and real-world data, APIs, and offchain systems. It is positioned as an upgrade to legacy financial protocols, including the COBOL standard and Java Runtime architecture. Nazarov has previously emphasized the need for the US to establish a competitive edge in tokenized assets to maintain attractiveness in global finance. The industry’s move towards tokenization aligns with the current trends in the market, signaling a significant shift towards innovative financial solutions.