Saudi Awwal Bank taps Chainlink to build regulated on-chain finance apps.
LINK exchange reserves have fallen to multi-year lows, signalling accumulation.
LINK’s price has held the $23 support but faces strong resistance near the $25 level.
Chainlink’s LINK token is holding firm near $23 as its partnerships expand and exchange balances fall to multi-year lows.
The combination of institutional adoption, a push into artificial intelligence (AI) infrastructure, and tightening token supply has set the stage for a potential breakout, though traders remain cautious at critical resistance levels.
Saudi Awwal Bank partners with Chainlink for blockchain finance
Saudi Awwal Bank, one of the largest banks in the Kingdom with more than $100 billion in assets, has signed an agreement with Chainlink to begin building regulated on-chain finance applications.
Developers at the bank will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Chainlink Runtime Environment (CRE) to create tokenised applications that can connect Saudi markets to global blockchain networks.
Saudi Awwal Bank (@alawwalsab), one of Saudi Arabia’s largest banks with over $100 billion in total assets, is leveraging several Chainlink services to facilitate the deployment of next-generation onchain applications in Saudi Arabia.
Under the innovation agreement, SAB is… https://t.co/DAvUawI3Yg pic.twitter.com/Zhlm1GJdGp
— Chainlink (@chainlink) September 16, 2025
The agreement aligns with Crown Prince Mohammed bin Salman’s Vision 2030, which aims to diversify the economy beyond oil revenues.
By partnering with Chainlink, the bank is opening a path for tokenised capital markets, an industry valued at more than $2.3 trillion in Saudi Arabia.
This move could accelerate the adoption of regulated blockchain infrastructure in the region, placing Chainlink at the heart of institutional finance in the Middle East.
Chainlink’s institutional push meets AI expansion
The Saudi deal comes on the heels of another strategic move.
On September 16, Chainlink announced it had joined AethirCloud’s AI Unbundled Alliance, a program designed to advance Web3 artificial intelligence infrastructure.
Through this initiative, Chainlink will provide its CRE platform to developers working on AI-powered decentralised applications while also funding hackathon bounties and targeted grants.
By joining the alliance, Chainlink has extended its role from powering decentralised finance (DeFi) to enabling verifiable AI workflows across both blockchain and traditional systems.
This broadens Chainlink’s appeal and positions LINK as a critical piece of infrastructure in the next phase of Web3 adoption.
Shrinking LINK reserves point to accumulation
While adoption headlines are encouraging, on-chain data may be giving an even clearer signal.
The number of LINK tokens held on centralised exchanges has dropped from nearly 200 million in 2023 to about 158.1 million in September 2025.
$LINK on exchanges hit a multi-year low while the biggest institutions on the planet are adopting Chainlink pic.twitter.com/0g78TjNZDu
— Quinten | 048.eth (@QuintenFrancois) September 16, 2025
The steady decline reflects accumulation by long-term holders and reduces the amount of supply available for immediate sale.
In previous cycles, sharp drops in exchange reserves have often preceded major rallies.
This trend, combined with growing institutional partnerships, has strengthened the bullish case for LINK despite recent market hesitation.
Notably, the shrinking reserves are a sign of tightening liquidity that could fuel a price breakout if demand rises.
Chainlink price outlook points to a potential breakout
The current mix of supply-side tightening, expanding institutional use cases, and Chainlink’s entry into AI infrastructure has created a constructive backdrop for LINK.
While short-term sentiment shows caution, the long-term setup is tilted toward growth as demand converges with reduced token availability.
At press time, LINK traded at $23.28 with a market capitalisation of $15.79 billion, according to Coingecko.
The token has traded between $23.18 and $23.73 in the past 24 hours and remains up more than 119% over the past year.
However, it is still trading 55% below its all-time high of $52.70 set in May 2021.
Technical indicators suggest a period of consolidation, with LINK holding support above $23.
However, bulls face heavy resistance at $25. A decisive close above that level could open the way to $26.1 and beyond.
If adoption in Saudi Arabia accelerates and the AI alliance delivers traction, traders believe Chainlink could overcome resistance and aim for higher targets, with some analysts pointing to $52 as a possible milestone by year-end.
On the downside, a break below $23 risks a retreat toward $20 or even $19.53, which analysts view as a key support zone.
