Swift, a prominent Interbank messaging platform, has partnered with blockchain oracle network Chainlink.
Swift explores global blockchain interconnectivity
As revealed, the two firms will work together on providing a proof-of-concept (PoC) solution. Swift divulged that the initiative would aid traditional financial organizations in facilitating transactions via blockchain networks.
Chainlink co-founder Sergey Nazarov confirmed the initiative during the firm’s SmartCon 2022 Conference in New York on Sept. 28.
Also, the Strategy Director of Swift, Jonathan Ehrenfeld Solé, added that institutional investors have been eyeing the possibility of accessing digital and traditional investments on a single platform.
Per emerging reports, the PoC uses Chainlink’s cross-chain interoperability protocol (CCIP). So, it could enable Swift to transfer financial assets across different blockchain networks. Nazarov noted that the move would fast-track the embracement of Distributed Ledger Technology (DLT) blockchain over capital markets and traditional finance.
Notably, Swift serves as the world’s leading Interbank Messaging network and documented an average of 44.8 million daily transactions in August. The network has about 11,000 banks connected.
But despite its popularity, Swift is enduring notable setbacks.
One of the prominent issues concerning the global payment service is transaction delays. Notably, it takes numerous days for transactions to reach from point A to point B via Swift.
Chainlink’s contributions
Chainlink disclosed that the partnership with Swift would support financial institutions to gain blockchain capability. With that, these financial institutions won’t have to replace, develop or integrate new connectivity into existing networks.
Furthermore, Chainlink added that it would need an advance update with huge expenses.
