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Chainlink Joins Forces with SWIFT
SWIFT may connect with blockchain assets in the future. In a press release, Chainlink, a blockchain oracle network, said that a collaborative proof-of-concept would enable SWIFT to instruct token transfers in practically any blockchain environment.
This would enable financial institutions to become blockchain-capable without incurring significant up-front expenditures or development obstacles.
The next proof-of-concept will employ Chainlink’s Cross-Chain Interoperability Protocol (CCIP), a worldwide standard for cross-chain communications, data, and token transfer, initially announced in August 2021.
At SmartCon 2022, co-founder and CEO Sergey Nazarov highlighted that the initiative will allow communications and token transfer among various entities.
SWIFT is using the Cross-Chain Interoperability Protocol (CCIP) in an initial proof of concept.
CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the SWIFT network become interoperable across all blockchain environments.https://t.co/8GOBNhzwCk pic.twitter.com/Pvm0Cex45e
— Chainlink (@chainlink) September 28, 2022
Jonathan Ehrenfeld Solé, director of SWIFT strategy, remarked that this is not the first time Chainlink and SWIFT have collaborated. Approximately five years ago, Chainlink and SWIFT collaborated on another proof-of-concept involving the issuing and redeeming of bonds.
This attempt was very successful and the initial step in the relationship between Chainlink and SWIFT.
The two big companies in their respective fields have collaborated on the shared efforts. Chainlink is a top-25 blockchain with a $3.9 billion market valuation. It is widely acknowledged as the premier blockchain oracle platform.
SWIFT is the most prominent worldwide financial communications network. It connects to about 11,000 institutions and processes over five billion financial messages yearly.