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Chainlink and SWIFT's Experiment Unveils Global Potential for Tokenized Asset Markets

by BSCN

August 31, 2023

chain

Swift's experiments with Chainlink showcased its ability to provide a unified access point to multiple networks, leveraging its secure infrastructure.

SWIFT and Chainlink Join Forces

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) partnered with Chainlink to conduct a series of experiments that demonstrated that its infrastructure could be used seamlessly to transfer tokenized value across multiple public and private blockchains. The findings could remove significant friction slowing the growth of tokenized asset markets and enable them to scale globally as they mature, according to SWIFT. 

As per reports, 97% of institutional investors believe it will revolutionize asset management and be a positive force, primarily because it can help increase efficiency, reduce costs, and, by enabling fractional ownership, open up new investment opportunities for more people.

However, a challenge for investors and institutions is that tokenized assets are managed on different blockchains, each with its features and liquidity characteristics. 

Swift has reportedly demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure. As part of the experiments, Swift collaborated with major financial institutions, including Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust & Clearing Corporation. 

Swift collaborated with the Chainlink protocol to provide an enterprise abstraction layer to securely connect Swift to Ethereum Sepolia, while Chainlink's Cross-Chain Interoperability Protocol (CCIP) enabled interoperability between the two blockchains. 

As part of the experiments, SWIFT reviewed the design and technical development of a solution, operational risks, and legal responsibilities related to data privacy and governance. 

On June 6, SWIFT announced the partnership with Chainlink to integrate blockchain networks into the financial industry. The collaboration aimed to leverage Chainlink's Cross-Chain Interoperability Protocol (CCIP) to connect financial institutions' systems seamlessly with blockchain networks. 

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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