Chainlink plays a critical role in Traditional Finance's transition to Blockchain.

Jefferies states that Chainlink is a fundamental building block for the blockchain integration of traditional finance. This network securely provides smart contracts with access to real-world data.

According to the analysts' report, demand for the LINK token is expected to increase. This demand will grow as tokenization pilots move into production and institutional structures become increasingly dependent on Chainlink's services.

The report highlighted that Chainlink has secured assets worth $103 billion across more than 2,500 projects. These projects include major partners such as Swift, DTCC, and JPMorgan.

Chainlink could become a foundational layer for traditional finance. This transition is accelerating, especially with capital markets adopting blockchain infrastructure. In this report, published after discussions with Sergey Nazarov, the decentralized oracle network connects smart contracts to real-world data and off-chain systems, thereby enabling advanced uses such as tokenized asset settlement, parametric insurance, and cross-chain messaging.

Jefferies also stated that Chainlink's native token, LINK, would benefit from the acceleration of the tokenization process. As of September, Chainlink had secured assets worth $103 billion via oracle data, a figure that was only $23 billion at the start of 2024. This supports more than 2,500 projects.

On the other hand, tokenization, by converting real-world assets into programmable digital tokens, increases the demand for infrastructure that can securely connect both on-chain and off-chain environments. Chainlink's Cross-Chain Interoperability Protocol (CCIP) and Decentralized Oracle Networks (DONs) overcome this challenge, supporting real-time settlement and automation across finance, insurance, and supply chains.

Jefferies noted that the adoption of digital assets is in its earlier stages, but tokenization projects are rapidly moving into the production phase. LINK is used for service payments, node operations, and staking. The growing demand for Chainlink's infrastructure could provide token holders with access to future cash flows.

Despite competitors such as LayerZero and Pyth, Chainlink's network effects and first-mover advantage could position it durably in blockchain infrastructure. Analysts estimate that the value of tokenized assets, excluding stablecoins, has reached $30 billion, representing a 253% increase this year. Due to tokenization's ability to reduce operational costs and increase liquidity, Jefferies expects institutional investors to gravitate towards blockchain-based settlement layers. Thus, Chainlink could become central to this transition.