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SWIFT and Chainlink Join Forces
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) partnered with Chainlink to conduct a series of experiments that demonstrated that its infrastructure could be used seamlessly to transfer tokenized value across multiple public and private blockchains. The findings could remove significant friction slowing the growth of tokenized asset markets and enable them to scale globally as they mature, according to SWIFT.
In a new results report, Swift, #Chainlink, and more than a dozen of the largest financial institutions and market infrastructure providers successfully demonstrated a secure and scalable way to transfer tokenized assets cross-chain using CCIP.
— Chainlink (@chainlink) August 31, 2023
Key results:
• Connected existing… pic.twitter.com/AfJajWAF8F
As per reports, 97% of institutional investors believe it will revolutionize asset management and be a positive force, primarily because it can help increase efficiency, reduce costs, and, by enabling fractional ownership, open up new investment opportunities for more people.
However, a challenge for investors and institutions is that tokenized assets are managed on different blockchains, each with its features and liquidity characteristics.
Swift has reportedly demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure. As part of the experiments, Swift collaborated with major financial institutions, including Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust & Clearing Corporation.
Swift collaborated with the Chainlink protocol to provide an enterprise abstraction layer to securely connect Swift to Ethereum Sepolia, while Chainlink's Cross-Chain Interoperability Protocol (CCIP) enabled interoperability between the two blockchains.
As part of the experiments, SWIFT reviewed the design and technical development of a solution, operational risks, and legal responsibilities related to data privacy and governance.
On June 6, SWIFT announced the partnership with Chainlink to integrate blockchain networks into the financial industry. The collaboration aimed to leverage Chainlink's Cross-Chain Interoperability Protocol (CCIP) to connect financial institutions' systems seamlessly with blockchain networks.