BREAKING: SWIFT Announces Successful Blockchain Interoperability Tests

By Vince • August 31, 2023 12:41 pm • Comments

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has just announced successful blockchain interoperability tests.

According to a recent press release, the international money transfer standard was able to shift tokenized assets between blockchains using Chainlink (LINK) as a common point of interoperability between different blockchain networks.

Chainlink’s price has yet to react to this recent development.

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SWIFT made this announcement via the X social media platform: “Exciting news! Together with more than a dozen major financial institutions, we’ve successfully shown how the Swift network can facilitate the transfer of tokenized assets across multiple public & private.”

 

SWIFT released this press statement:

Swift today released results from a new series of experiments that show its infrastructure can seamlessly facilitate the transfer of tokenised value across multiple public and private blockchains.

The findings have potential to remove significant friction slowing the growth of tokenised asset markets and enable them to scale globally as they mature.

While tokenisation is in its infancy, 97% of institutional investors believe it will revolutionise asset management and be a positive force in the industry[1], not least because of its potential to increase efficiency, reduce costs and, by enabling fractional ownership, open up opportunities to more investors.

One issue challenging investors and institutions, however, is that tokenised assets are managed on different blockchains, each with its own functionality and liquidity profile.

Interoperability between these blockchains is crucial, otherwise financial institutions must build connections to each platform, creating significant operational challenges and cost.

Working with more than a dozen major financial institutions and market infrastructures and Chainlink, a leading Web3 services platform, Swift has successfully demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure, thereby significantly reducing operational challenges and investment required for institutions to support the development of tokenised assets.

The experiments are part of Swift’s wider strategy to ensure secure, global interoperability as new technologies and platforms emerge.

They build on work over the past few years to show how Swift infrastructure could support the financial community in interconnecting Central Bank Digital Currencies (CBDCs) and other digital assets with new and existing payments systems.

Chainlink (LINK) enthusiasts, investors, and speculators celebrated the recent announcement and took it as an extremely bullish sign for the protocol.

Coinspeaker listed the other participants who took part in the test:

Swift, in collaboration with major financial services companies like Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, and Lloyd Banking Group, among others, has risen to the challenge.

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