Swift and Chainlink Experiments on Blockchain Compatibility
Swift, the global messaging network for international payments, has conducted experiments with Chainlink to explore its potential as a central hub for transferring tokenized assets across different blockchains. The study involved major financial institutions like ANZ, BNP Paribas, and Citi. The key findings are as follows:
- 97% of institutional investors believe that tokenization will revolutionize asset management.
- Tokenization can improve efficiency, reduce costs, and increase investor involvement through fractional ownership.
- Connecting with multiple blockchains poses challenges for financial institutions in terms of operations and expenses.
- Swift’s experiments aimed to provide a secure point of access to multiple blockchain networks, mitigating operational challenges for institutions.
- The infrastructure developed by Swift can serve as the backbone for global scaling of tokenized asset markets.
The trials also focused on data privacy, governance, operational risks, and legal responsibilities. Swift’s chief innovation officer emphasized the importance of interoperability in their approach.
“It’s now clear that both top global banks and leading market infrastructures believe there will be greater adoption of digital assets across the entire banking industry, and that this adoption will happen using multiple different blockchain technologies at the same time.” – Sergey Nazarov, co-founder at Chainlink
Swift intends to continue identifying use cases for tokenized assets, with a focus on secondary trading of non-listed assets and private markets.
Hot Take: Innovating the Transfer of Tokenized Assets
The collaboration between Swift and Chainlink in exploring blockchain compatibility for the transfer of tokenized assets has significant implications for the financial industry. By providing a central hub and secure access to multiple blockchain networks, Swift’s infrastructure can address the operational challenges faced by financial institutions. This paves the way for efficient, cost-effective, and widespread adoption of tokenization, revolutionizing asset management. With continued exploration of use cases and a focus on secondary trading and private markets, Swift is poised to drive the advancement of tokenized assets in the banking industry.
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