Swift and Chainlink: a partnership for blockchain development

The bridge between central bank digital currencies (MNBC), new crypto applications and blockchain is revolutionizing the way payments will be made in the future. Even the Swift system seeks to connect new technologies to provide new services, but above all not to disappear.

Bringing together traditional finance and blockchain

The traditional financial system of the 1980s has taken a big step forward for currency trading, with Chainlink as its partner. Seeing its competitors enter the blockchain niche, the global financial infrastructure Swift does not want to stay away from the phenomenon.

In recent months, the American bank JPMorgan Chase has formed several partnerships in the blockchain space aimed at modernizing its payment infrastructures. Similarly, Mastercard, one of the payment giants, is investing heavily in blockchain infrastructure.

At a conference in New York on Wednesday, Chainlink (LINK) co-founder Sergey Nazarov and SWIFT Chief Strategy Officer Jonathan Ehrenfeld Solé unveiled a proof-of-concept project.

The Swiss interbank messaging system will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable the transfer of digital assets across multiple blockchains. Chainlink is the most important oracle network in the ecosystem, it allows to link data from the physical world to the blockchain.

Through this alliance, it is a former financial giant allied with the crypto world. Swift will soon celebrate its 50th anniversary and connects 11,000 banks in almost every country in the world. The group handles billions of transactions every day.

For its part, Chainlink is an interoperability specialist, which means that the company is able to perform operations and transfers on almost all existing blockchains. It’s a bit like the Swift of the blockchain.

In other words, if the two actors were to meet. The alliance will further allow Swift to connect to virtually any blockchain to allow traditional financial players to access blockchain resources on a single network.

Interoperability: a major challenge for the future

According to Sergey Nazarov, this collaboration will ultimately help accelerate the adoption of blockchain distributed ledger technology (DLT) in capital markets as well as traditional finance in general.

However, SWIFT’s interest in blockchain is not new: last May, the network partnered with French consultancy Capgemini to test payments in a digital central bank currency (MNBC).

Jonathan Ehrenfeld Solé said after announcing that “institutional investors have an undeniable interest in digital assets”, they want access to all cryptocurrencies on a “single platform”.

For financial institutions, it will be a way to connect all digital assets using a single existing system, which greatly simplifies things.

For its part, the LINK cryptocurrency of Chainlink did not see its price increase after the announcement. However, it still ranks 23rd in the cryptocurrency market cap rankings and its current price is $7.75.

The information is all the more surprising as the market was green, with Bitcoin (BTC) up 2.7% in 24 hours, while Ethereum (ETH) is up 3.4% over the same period. .

Interoperability is a major challenge for the years to come in order to create an efficient and ergonomic framework for all financial players. Moving from one blockchain to another, moving from traditional systems to crypto, managing the MNBC and the arrival of tokenized assets, many challenges await players in the financial world such as Swift or Mastercard. Apparently, Swift decided to take the lead.

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Swift and Chainlink: a partnership for blockchain development

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