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Chainlink, a supplier of price feeds and other data to blockchains, has partnered with the interbank messaging system for cross-border payments, SWIFT, to work on a proof-of-concept project that uses a cross-chain interoperability protocol (CCIP). Sergey Nazarov, co-founder of Chainlink, and Jonathan Ehrenfeld Solé, head of SWIFT strategy, made the project announcement on September 28 at the SmartCon 2022 Conference in New York. https://twitter.com/chainlink/status/1575185397755547649
SWIFT Enables Interaction Across All Blockchain Systems
The interbank network would be able to interact across all blockchain systems thanks to CCIP, which would make it possible for SWIFT messages to specify on-chain token transfers. With over 11,000 banks worldwide connected, the SWIFT interbank messaging system is the most popular platform for conventional cross-border fiat transactions. The system recorded 44.8 million messages every day on average in August. On the SWIFT network, transactions can take several days to complete. The corporation has also been investigating blockchain, DLT technologies, and central bank digital currencies (CBDCs) to enable quicker payments. Chainlink said,
"This partnership with SWIFT enables financial institutions to achieve blockchain capability without replacing, building, and integrating new connectivity into legacy systems," which it claimed would necessitate significant alterations and come at an "exceptionally high" cost.
TradeFi Investors and Crypto Natives
Interoperability has grown in demand recently and has been hailed as the next big thing for TradeFi investors and crypto natives investing in digital assets. On September 22, the crypto network Lit Protocol announced that it had secured $13 million in a fundraising round led by the cryptocurrency investment company 1kx. The firm would use the funds to recruit developers to build decentralized ownership and protocol compatibility. In the meantime, several Solana-based initiatives banded together in August to launch the Open Chat Alliance. The improvement of information flow between participants and systems that interact during the lifecycle of tokenized assets was the focus of a series of experiments SWIFT announced last year that would be conducted in the first quarter of 2022.