Interbank Messaging System Swift Successfully Transfers Tokenized Value Across Blockchains
The interbank messaging system Swift announced in June it was collaborating with Chainlink and dozens of financial institutions to test connecting blockchains. In recent experiments, Swift and Chainlink have successfully transferred tokenized value across multiple private and public blockchains, according to a press release.
Key Points:
- Swift and Chainlink have successfully transferred tokenized value across multiple blockchains.
- The experiments have the potential to remove friction in tokenized asset markets and enable global scalability.
- Financial institutions such as BNP Paribas, BNY Mellon, and Lloyds Banking Group collaborated with Swift on the experiments.
- Tokenization can improve efficiency and transparency in bond markets, according to a report from the Hong Kong Monetary Authority.
- Swift used Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to connect with different blockchains.
“For tokenization to reach its potential, institutions will need to be able to seamlessly connect with the whole financial ecosystem. Our experiments have demonstrated clearly that existing secure and trusted Swift infrastructure can provide that central point of connectivity, removing a huge hurdle in the development of tokenization and unlocking its potential,” said Tom Zschach, chief innovation officer at Swift in a press statement.
Chainlink’s CCIP, designed to facilitate cross-chain applications and services, went live in July.
Hot Take:
The successful collaboration between Swift and Chainlink in transferring tokenized value across blockchains is a significant step towards the growth and scalability of tokenized asset markets. By leveraging Swift’s secure infrastructure and Chainlink’s Cross-Chain Interoperability Protocol, institutions can seamlessly connect with the financial ecosystem, removing barriers in the development of tokenization. This achievement showcases the potential of blockchain technology in improving efficiency and transparency in financial markets.
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