The oracle network Chainlink (LINK) and the interbank network SWIFT have jointly announced that they are working on a proof of concept to allow institutional investors to transfer assets across different blockchains. According to their statement, this collaboration will bridge the gap between traditional finance and digital assets.
Chainlink collaborates with SWIFT
At a conference in New York on Wednesday, Chainlink (LINK) co-founder Sergey Nazarov and SWIFT chief strategy officer Jonathan Ehrenfeld Solé revealed a proof-of-concept project.
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
The Swiss interbank messaging system will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to transfer digital assets across multiple blockchains. Chainlink is the largest oracle network in the ecosystem and allows data from the physical world to be linked to the blockchain, we explained how it works in detail in our dedicated presentation.
According to Sergey Nazarov, this collaboration should ultimately accelerate the adoption of distributed ledger blockchain (DLT) technology in the capital markets and more broadly for traditional finance.
SWIFT’s interest in blockchain is not new, however: last May, the network partnered with French consultancy Capgemini to test payments in central bank digital currencies (CBDs).
To understand the scope of this partnership, it should be remembered that SWIFT is the most widely used interbank communication platform for cross-border payments. It connects more than 11,000 banks worldwide and handles an average of more than 40 million transactions per day.
A response to investor demand
SWIFT’s Chief Strategy Officer once again confirmed that investors are increasingly interested in digital assets and are demanding the ability to invest in both digital and traditional assets in one place.
He added that the partnership with Chainlink will “bridge the gap between traditional finance and digital assets for institutional clients”.
SWIFT will therefore be able to use Chainlink’s CCIP technology to transmit assets between different blockchains in a secure manner, thus avoiding the use of bridges, which are a prime target for hackers due to the large amount of cash they host.
LINK, Chainlink’s cryptocurrency, did not see a rise following the announcement. However, it remains in 23rd place in the cryptocurrency rankings in terms of capitalisation, with a price currently at $7.75.
The news is all the more surprising given that the market is in the green today, with Bitcoin (BTC) posting +2.7% over 24 hours and Ethereum (ETH) posting +3.4% over the same period.
