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Can someone help identify what this chain would be used for?

Uhhhh, no. As was said above, a torque strap, chain, etc. would be installed on the driver's side of the motor/frame. As the torque (launch, shift, etc.) is applied, the motor tries to rotate toward the passenger side.
 
...whatever it was for, my concern would be what else has that level of shade-treein'??
 
I KNOW--I KNOW !! it is to drag along the ground to keep down static electricity.....Maybe not..........................MO
 
It's either an engine anti-theft device or the other end of the chain gets attached to a tree so the car can't get away.
 
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