Chainlink Is Building a Token Infrastructure for SWIFT
A collaborative proof-of-concept will allow SWIFT messages to instruct token transfers.
- Chainlink and SWIFT are working on a proof-of-concept that will help SWIFT messages instruct token transfers.
- This innovation will allow financial institutions to easily integrate with blockchain technology via SWIFT.
- The proof-of-concept will make use of Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
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Chainlink and SWIFT have announced a proof-of-concept that will allow the international bank cooperative to transfer cryptocurrencies across almost all blockchains.
Chainlink Partners with SWIFT
SWIFT could soon interact with blockchain assets.
In a press release, blockchain oracle network Chainlink revealed that a collaborative proof-of-concept would allow SWIFT to instruct token transfers across nearly every blockchain environment.
Chainlink added that this would allow financial institutions to become blockchain-capable without confronting 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 transfer that was first announced in August 2021.
Co-founder and CEO Sergey Nazarov provided further details at SmartCon 2022. He noted that the project will “enable the communications and movement of tokens between a number of different institutions.”
SWIFT Strategy Director Jonathan Ehrenfeld Solé noted that this is not the first time Chainlink and SWIFT have worked together. He said that approximately five years ago, Chainlink and SWIFT worked on another proof-of-concept concerning bond issuance and redemption.
Solé said that this effort was “quite successful” and was “the first steps of [a] love story between Chainlink and SWIFT which 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 generally recognized as the leading blockchain oracle platform.
SWIFT, meanwhile, is the leading global financial messaging network. It is connected to about 11,000 banks and handles over five billion financial messages annually.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other cryptocurrencies.