Financial transaction network Swift and blockchain oracle network Chainlink recently joined forces in a promising experiment. According to their press statement, the collaboration has the “potential to remove substantial barriers that have been hindering the growth of tokenized asset markets.”
Major Financial Institutions Onboard
Announced in June, the project brought together top financial organizations like BNP Paribas, BNY Mellon, The Depository Trust & Clearing Corporation, and Lloyds Banking Group to assess blockchain interactions. This all-star cast helped scrutinize how well Swift and Chainlink can interoperate with different blockchain networks.
The Role of Chainlink’s New Protocol
For connectivity across various blockchains, Swift leveraged Chainlink’s newly launched Cross-Chain Interoperability Protocol (CCIP). Launched this July, CCIP aims to facilitate the development of applications and services that can function across multiple blockchains. Chainlink co-founder Sergey Nazarov stated that this technology “could link every blockchain with every bank chain.”
Tom Zschach, Chief Innovation Officer at Swift, emphasized that for tokenization to realize its full potential, “institutions must be able to connect seamlessly with the entire financial ecosystem.” The experiment demonstrated that Swift could act as this central connecting point, thereby “eliminating a significant obstacle in tokenization development.”
Impact on Global Financial Markets
The successful experiment aligns with the Hong Kong Monetary Authority’s recent report suggesting that tokenization could enhance the efficiency and transparency of bond markets. The watchdog’s statement followed a successful $100 million tokenized green bond offering in February, jointly conducted by the central bank and the local government.
