- Chainlink collaborates with Swift and a dozen top financial institutions to foster interoperability between private and public blockchains using CCIP.
- This game-changing venture includes renowned entities like BNP Paribas, BNY Mellon, Citi, ANZ, and more, aiming to streamline the trading of tokenized assets.
In a recent Twitter announcement, Chainlink revealed its landmark partnership with Swift and 12+ of the world’s largest financial institutions, aiming to leverage the Cross-Chain Interoperability Protocol (CCIP) for efficient connectivity and interoperability with private and public blockchains.
1/ Swift recently announced a collaboration with #Chainlink and 12+ of the largest financial institutions and FMIs in the world around using CCIP to enable connectivity with and interoperability between public/private blockchains
Who are these participants? 🧵👇 pic.twitter.com/nORAqof3wt
— ChainLinkGod.eth (@ChainLinkGod) July 23, 2023
The Power Players
The Society for Worldwide Interbank Financial Telecommunication (Swift), the leading interbank messaging network globally, orchestrates daily transactions amounting to $5 trillion with the support of 11,500+ financial institutions from 200+ countries. Among the financial behemoths joining the initiative are the Depository Trust & Clearing Corporation (DTCC), Citigroup Inc. (Citi), BNP Paribas, and the Australia and New Zealand Banking Group Limited (ANZ), each bringing colossal financial assets under their custodianship.
The Blockchain Integration Challenge
The integration of traditional and blockchain-based markets is riddled with complexities, as each blockchain network boasts its unique functionality and liquidity profile. The diverse landscape often results in management and trading overhead, hindering tokenized asset investments. However, with Swift’s expertise in streamlining international transactions, this initiative is poised to overcome market fragmentation.
Envisioning a Scalable Market
The recent series of experiments aims to determine how firms can exploit their existing Swift infrastructure to efficiently instruct the transfer of tokenized value across an array of public and private blockchain networks. Chainlink, a front-runner in Web3 services, offers connectivity across these divergent blockchain landscapes. This strategic partnership will also explore possible operational and regulatory challenges financial institutions might face in a blockchain environment.
The Future of Interoperability
The Swift-Chainlink initiative, if successful, will demonstrate how existing infrastructures can seamlessly interact with multiple blockchain networks, potentially attracting more investors into the private markets, enhancing liquidity, and opening new opportunities in the industry. The next phase of industry experiments is set to showcase Swift’s infrastructure’s adaptability, leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to bridge the gap between conventional systems and both public and private distributed ledger technology platforms.
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