Interbank messenger SWIFT is working alongside blockchain data provider Chainlink to develop a cross-chain interoperability protocol (CCIP).
Initially being built on proof-of-concept, the CCIP will connect SWIFT’s network to a plethora of blockchain services, allowing financial entities to access digital and traditional assets on one single network.
Crypto and digital assets have piqued SWIFT’s interest for integration as its Strategy Director, Jonathan Ehrenfeld Solé, said that its institutional investors hold “undeniable interest” in digital currencies.
There has also been a greater emphasis placed on fiat-to-crypto transactions in traditional and digital sectors over the past several months, as financial figureheads have placed a greater need for its integration.
Traditional Finance (TradFi) figures are some of the more notable players who wish to see various digital and traditional assets be placed under one network, according to Solé.
Announcing the joint-venture during a SmartCon 2022 Conference in New York yesterday, Chainlink aims to provide this by achieving a cross-chain interoperability in what Solé describes as ‘bridging the gap’ between traditional and digital assets for TradFi institutions.
Chainlink will facilitate SWIFT messages with its CCIP to enable token transfers throughout almost every blockchain network accessible. This attempts to accelerate the adoption of distributed ledger technology across capital markets and traditional finance.
With up to 44.8 million messages being sent per day connecting 11,000 banks from across the globe, the SWIFT messaging network has become a hub for cross-border fiat transactions. However its senior figureheads have addressed how its transactions can be sped up.
Chainlink will look to speed up this process through its blockchain capabilities by replacing, developing, and integrating new connectivity systems.