Chainlink is partnering with Swift in a new proof-of-concept project

Chainlink, a smart contract oracle network, and SWIFT, the Society for Worldwide Interbank Financial Telecommunication, are working on a new proof-of-concept project that will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable communication and on-chain token transfers across all blockchain networks.

“I’m very happy to announce that we are working on an initial Proof-of-Concept together with SWIFT on the use of CCIP in the capital markets to enable communications and the movement of tokens between a number of different institutions", said Chainlink co-founder, Nazarov.

Additionally, Sergey Nazarov stated at the SmartCon 2022 conference in New York City on Wednesday 28th, that this partnership will accelerate the adoption of distributed ledger technology (DLT) blockchains across capital markets and traditional finance.

SWIFT's principal function is to make simpler financial transactions and payments between international banks, while Chainlink's goal is to help decentralized internet to build a bridge between blockchain and real-world programs.

Institutional investors want to access both digital and traditional assets on one network and SWIFT's mission is to link its private key infrastructure (PKI) connecting more than 11,000 global banks, and a growing number of blockchains. One of the reasons behind this proof-of-concept project around CCIP is that “There is undeniable interest from institutional investors into digital assets”.  

According to Chainlink, this partnership would permit conventional financial institutions to conduct business on blockchain networks, without replacing, developing, and integrating new connectivity in legacy systems.

Currently, most blockchains can't communicate with each other, without a cross-chain bridge that allows users to move digital assets from one chain to another. The issue is that these bridges are often targeted by hackers, as only this year about $2 billion in cryptocurrency has been stolen in cross-chain bridge hacks.

Connecting to Chainlink’s secure middleware allows SWIFT to interact with any blockchain through its existing PKI:

“Then you have these two infrastructures that are secure, that are reliable, that are scalable”, said Ehrenfeld Solé.

Jonathan Ehrenfeld Sole, SWIFT’s strategy director, stated that the collaboration with Chainlink started a few years ago when they worked on exploring bond issuance and redemption.

“That was quite successful, and that was the first step of the love story between SWIFT and Chainlink, which continues today,” said Ehrenfeld Solé.

 Don't forget to follow us @cryptonezo to stay updated with the latest blockchain and cryptocurrency news.