Wednesday, September 27, 2023
HomeTop NFT CollectionChainlink Is Building a Token Infrastructure for SWIFT

Chainlink Is Building a Token Infrastructure for SWIFT

important point

  • Chainlink and SWIFT are working on a proof of concept to help SWIFT messages direct token transfers.
  • This innovation will allow financial institutions to easily integrate with blockchain technology via SWIFT.
  • The proof of concept utilizes Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

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Chainlink and SWIFT have announced a proof of concept that will enable international banking cooperatives to transfer cryptocurrencies between virtually any blockchain.

Chainlink partners with SWIFT

SWIFT will soon be able to interact with blockchain assets.

In a press release, blockchain oracle network Chainlink revealed that their joint proof-of-concept will allow SWIFT to direct token transfers in nearly any blockchain environment.

Chainlink added that this will allow financial institutions to become blockchain-enabled without facing high upfront costs and development challenges.

The upcoming proof of concept will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP), a global standard for cross-chain messaging, data, and token transfers first announced in August 2021.

Co-founder and CEO Sergei Nazarov provide details at SmartCon 2022. He said the project “allows for the communication and movement of tokens between many different institutions.”

SWIFT Strategy Director Jonathan Ehrenfeld Solé said this is not the first time Chainlink and SWIFT have worked together. He said that about five years ago, Chainlink and he SWIFT worked on another proof-of-concept for bond issuance and redemption.

Sole said the initiative was “a huge success” and “was the first step. [a] The love story between Chainlink and Swift continues today.

These initiatives represent a collaboration between two major players in their respective industries. Chainlink is a top 25 blockchain with a market cap of $3.9 billion. It is commonly recognized as the leading blockchain oracle platform.

Meanwhile, SWIFT is the world’s leading financial messaging network. It is connected to nearly 11,000 banks and processes over 5 billion financial messages annually.

Disclosure: At the time of writing, the author of this work owned BTC, ETH, and other cryptocurrencies.

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