SWIFT Works With Chainlink (LINK) To Connect Payments To Any Blockchain

✍️ 29 September, 2022 - 10:24 👤 Editor: Jakub Motyka

SWIFT has teamed up with Chainlink for blockchain interoperability in the financial space.
Chainlink’s LINK token is down 4% in the past day, but weekly gains are above 10%.

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Global financial messaging network, SWIFT, has partnered with Chainlink (LINK) for cross-chain communications. Chainlink’s cross-chain interoperability protocol (CCIP) will power the Initial proof-of-concept as part of the deal.

CCIP allows the interbank network to communicate across all blockchain platforms. The technology will also power direct on-chain token transfers. The interbank messenger is aiming for a more interoperable blockchain ecosystem in the new concept.

The Cross-Chain Interoperability Protocol To Boost Institutional Blockchain Adoption

The project, unveiled at the New York’s Smartcon 2022, will reportedly speed up blockchain adoption. It is a way in which the traditional financial players can connect to digital and conventional assets through a single network.

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

During the Web3-centric conference, Chainlink co-founder Sergey Nazarov expressed optimism about the project. Nazarov said that the step would boost the adoption of distributed ledger technology. He added that it would streamline institutional operations in the capital markets.

SWIFT strategy director Jonathan Ehrenfeld also commended Chainlink's bold step. The executive cited the support of Chainlink in crypto adoption by institutional clients. He added that the network offered broader access to digital assets and traditional financial instruments alike. Additionally, he sees the new partnership as a way to link conventional finance and digital assets.

Chainlink Aims For More Interoperability In TradFi and Digital Assets

Chainlink commented that the deal would let financial institutions access blockchain without heavy infrastructure overhaul. In 2021, SWIFT laid out a plan for experiments that enhance information exchange in the network. The new step is part of the larger concept toward more interoperability, bridging the digital and traditional market space.

SWIFT, The Society for Worldwide Interbank Financial Telecommunication, is a global inter-banking messaging system. It supports more than 11,000 banks and powers over 40 million messages per day. Moreover, the platform has presence in more than 200 countries.

Chainlink is a permissionless blockchain useful in data transfers. The blockchain, based on Ethereum, connects data from off-chain sources to smart contracts. Its native token, LINK, ranks as the 21st most valuable crypto in the digital assets list with a valuation of $3 billion. In the past day, the token has dipped 4% but remains on the green at 13% in the past week.

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Jared Kirui

EN: Jared Kirui is an experienced financial writer with a passion for all things blockchain technology. Previously, he was into stock markets and forex, providing asset managers with top-notch content. With a flair for producing high-quality articles, he started covering crypto news in 2021. He is open-minded, trades for fun, and enjoys sports.

ES: Jared Kirui es un escritor financiero experimentado apasionado por todo lo relacionado con la tecnología blockchain. Anteriormente, estuvo en los mercados bursátiles y forex, brindando a los administradores de activos contenido de primer nivel. Con un don para producir artículos de alta calidad, comenzó a cubrir noticias crypto en 2021. Tiene una mente abierta, comercia por diversión y disfruta de los deportes.