Based on Chainlinks work dealing with Swift and banks, Nazarov explained why he thinks banks will build their own blockchains.
Nazarov claimed there are three stages of bank adoption. Stage 1 focuses on custody, and entails simply looking after crypto assets (driven by customer trading demands) on their native chains. Stage 2 encompasses tokenizing real-world assets, in a similar way to making derivative assets, which raises the question: onto which chain will these assets be placed? Nazarov contended that this juncture is when banks recognize the need to establish their own chains to exert full control over their tokenized real-world assets.
Pointing to banks that have set up their own digital asset departments, Nazarov observed, And what all of those departments are coming to as a conclusion is we have to have our own app chain because why am I going to pay fees to some other one, some other persons chain? Ill just have my own chain. He argued that this is when banks realize they should create their own chains to have complete control over their own tokenized real-world assets.
Stage 3 emerges when banks start the development of financial protocols on their proprietary chains, essentially mirroring the contemporary DeFi landscape but within a tighter, regulated framework. This is where Nazarov reckons Chainlink will come in.
In that third stage, they're invariably going to be dealing with us because we power the vast majority of DeFi. They're going to need market data, they're gonna need identity data, they're gonna need automation, they're going to need functions. All the stuff we make, they're going to need, he said. I know that because I've already seen a lot of the designs, and the designs are basically copying the DeFi [protocols] we already power.
As mentioned before, SWIFT and a number of banks like Bank of America are already on board and doing their internal testing.