The Society for Worldwide Interbank Financial Telecommunication (SWIFT) disclosed that SWIFT and blockchain data provider Chainlink would be conducting a trial to explore the utilization of SWIFT’s current infrastructure for transferring tokenized assets across both public and private blockchain networks. SWIFT and Chainlink are utilized by a number of prominent financial institutions, including Citi, BNY Mellon, Lloyds Banking Group, the Depository Trust and Clearing Corporation, BNP Paribas, Australia and New Zealand Banking Group Limited, Clearstream, Euroclear, and SIX Digital Exchange.
Furthermore, the trial will investigate potential solutions to operational and regulatory challenges that banks encounter in the blockchain ecosystem. The SWIFT network is connected to over 11,000 financial institutions and banks. Chainlink, a network established in the Cayman Islands that links Ethereum smart contracts to external data sources, will facilitate connectivity across both public and private blockchains in this undertaking.
Last year, SWIFT declared a collaboration with a blockchain infrastructure firm to explore blockchain interoperability using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). According to Sergey Nazarov, the co-founder of Chainlink, the implementation of a unified interface for banks to access blockchains will enhance the security of transactions.
According to the speaker, the establishment of connectivity between banks and blockchains through CCIP can facilitate the expansion of decentralized finance. This is because banks will be able to seamlessly engage with public blockchains and transfer value to and from them using their current systems.
