SWIFT, an international payment system, has entered into an agreement with oracle provider Chainlink to test a proof of concept (PoC) for making payments using different blockchains.
This was announced by Chainlink co-founder Sergey Nazarov and SWIFT director of strategic development Jonathan Ehrenfeld Solé at the SmartCon 2022 conference in New York. For initial proof of concept, SWIFT will use the Cross-Chain Interoperability Protocol (CCIP). It will allow traditional financial institutions to access digital assets and regular money on the same platform, and transactions can be made through different blockchains. Thanks to the CCIP protocol, SWIFT will report the transfer of crypto assets in almost all blockchains, interacting with their ecosystems.
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
Sole noted that institutional investors are showing genuine interest in cryptocurrencies. Therefore, getting access to digital and traditional assets in one place will be really convenient for them. The cooperation between the two companies will allow financial institutions to use the possibilities of the blockchain without switching from existing systems and without developing new services. In addition, there will be no need to modify legacy systems, since this will entail significant costs. Nazarov added that the initiative will accelerate the adoption of blockchain and distributed ledger technology (DLT) in the capital markets.
The SWIFT system has long explored the potential of blockchain, DLT, and even central bank digital currencies to speed up payments, as transactions in SWIFT can take several days. In May, the network said it was working on building an ecosystem where central banks could jointly test government stablecoins. SWIFT recently partnered with American fintech company Symbiont to test enterprise data exchange using blockchain and smart contracts.