Grayscale Names Chainlink Essential for Future Finance Revolution

The investment firm calls the blockchain network “essential infrastructure” for tokenized finance in a new research report.

The report comes as traditional banks explore blockchain technology. Grayscale says Chainlink solves key problems that prevent wider adoption of digital finance systems.

Beyond Price Feeds: Chainlink’s Expanding Role

Most people know Chainlink for providing price data to blockchain applications. But Grayscale’s research shows the network does much more. The company describes Chainlink as middleware that connects different blockchains and meets banking compliance needs.

“Chainlink is the critical connective tissue between crypto and traditional finance,” the Grayscale report titled “The LINK Between Worlds” states. “It can already be considered essential infrastructure in blockchain-based finance.”

The research highlights Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This technology allows tokens and messages to move between different blockchain networks. The protocol was demonstrated in the JPMorgan collaboration, showing real-world applications. It also points to partnerships with major data providers like S&P Global and FTSE Russell.

Source: research.grayscale.com

These partnerships help traditional markets interact with blockchain networks using verified data. Grayscale believes these connections make Chainlink the bridge between old and new finance systems.

Massive Market Growth Potential

The tokenized asset market shows huge growth potential. Currently worth $35 billion, it represents just 0.01% of global fixed income and equity securities. The market has grown from around $5 billion in early 2023.

Grayscale expects this growth to continue as banks and asset managers explore blockchain technology. The firm says growing tokenization could increase demand for Chainlink’s services.

Financial assets like stocks and bonds still mostly exist on traditional ledgers. For these assets to gain blockchain benefits, they need tokenization, verification, and connection to external data sources. Chainlink provides these crucial services.

Historic JPMorgan Partnership Proves Concept

A groundbreaking test in May 2025 showed Chainlink’s capabilities in action. JPMorgan’s Kinexys division, Ondo Finance, and Chainlink completed the first cross-chain delivery-versus-payment settlement between a private payment network and a public blockchain.

The transaction involved trading Ondo’s tokenized Short-Term U.S. Government Treasuries Fund (OUSG). JPMorgan used its private blockchain for payments while Ondo Chain handled the asset transfer. Chainlink’s Runtime Environment coordinated the entire process.

“This groundbreaking test shows how Kinexys Digital Payments can securely and efficiently provide payment settlement for transactions involving the exchange of assets on public blockchain,” said Nelli Zaltsman from JPMorgan’s Kinexys division.

This marked JPMorgan’s first structured transaction on a public blockchain after years of using only private networks. The success proves that major banks can safely use public blockchain systems with proper infrastructure.

First U.S. Chainlink ETF on the Horizon

Grayscale has filed to convert its $29 million Chainlink Trust into an exchange-traded fund. The proposed ETF would trade under ticker GLNK on NYSE Arca. If approved, it would be America’s first Chainlink ETF.

The fund includes an innovative staking component. This could generate additional returns for investors beyond price appreciation. Third-party providers would stake the LINK tokens while keeping them in custodian wallets.

Grayscale competes with Bitwise Asset Management, which also filed for a Chainlink ETF. Both companies race to capture first-mover advantage in this new market.

The ETF structure removes technical barriers that prevent institutional investors from accessing cryptocurrencies directly. Traditional pension funds and hedge funds can gain LINK exposure through familiar investment vehicles.

Investment Thesis and Market Position

Grayscale classifies LINK as the largest asset in the “Utilities & Services” crypto sector. The token ranks as the biggest non-Layer 1 cryptocurrency when excluding stablecoins.

Unlike tokens tied to single blockchains, Chainlink supports multiple networks. This gives LINK holders exposure to activity across the entire crypto economy. Demand for LINK could track usage of Chainlink services on Ethereum, Layer-2 networks, and other blockchain platforms.

The research suggests LINK belongs in diversified crypto portfolios alongside Bitcoin and Ethereum. Analyst accumulation data shows the Chainlink Reserve has grown to 803,388 tokens valued at approximately $11 million.

Recent market data indicates steady institutional buying rather than short-term speculation. The average cost basis of $20.06 suggests strategic long-term positioning by sophisticated investors.

The Bridge to Tomorrow’s Finance

Grayscale’s research positions Chainlink at the center of finance’s digital transformation. The tokenized real-world asset sector expanded by over 260% in 2025’s first half, reaching approximately $23 billion in total value according to industry reports.

As traditional financial institutions integrate blockchain technology, they need reliable infrastructure that maintains regulatory compliance. Chainlink’s proven track record with major institutions like JPMorgan validates its enterprise-grade capabilities.

The successful cross-chain settlement test provides a blueprint for how established financial companies can access tokenized asset markets. This infrastructure enables the next phase of blockchain adoption in traditional finance while preserving the security and compliance standards institutions require.

Chainlink’s partnerships with government agencies and major corporations demonstrate real-world utility beyond speculation. The network’s expanding role in connecting traditional and digital finance systems supports Grayscale’s thesis that oracle infrastructure will capture significant value as tokenization accelerates.