The Company for global interbank financial telecommunications, better known as SWIFT, is an international network for financial communications between banks, especially for cross-border payments. The giant banking network announced on Aug. 31 that it had successfully completed multiple tests using blockchain technology.
Exciting news! Together with more than a dozen large financial institutions, we have successfully shown how this works #Fast The network can facilitate the transfer of tokenized assets across multiple public and private networks #Blockchains.
𝗟𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲: pic.twitter.com/VVtt1VnJZc— Swift (@swiftcommunity) August 31, 2023
SWIFT partners with Chainlink on Ethereum
Working with ten major financial institutions, SWIFT has explored the possibilities of transferring digital assets between the current financial infrastructure and various blockchain networks. The interbank messaging service used ChainLink, a popular crypto project built on top of the Ethereum (ETH) network.
SWIFT has been researching the blockchain for several years. According to the Belgian association, the connection between traditional financial institutions and the functionalities that blockchains offer is crucial. The result of the current study gives a clear insight into the interoperability when linking these different payment systems.
Connection between different crypto networks
The latest investigation concerns international banks such as Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas and Lloyds Banking Group. In the last experiment, SWIFT used ChainLink’s Cross-Chain Interoperability Protocol (CCIP).
Through this CCIP protocol, SIWFT and Chainlink have managed to establish a fast and secure connection between the Sepolia testnet on the Ethereum network and other blockchains. This allows them to transfer digital assets between different blockchain networks.
The findings in the SWIFT report could help resolve key conflicts that are slowing the growth of the digital asset market, according to the company.
“Interoperability is at the core of what we do at Swift to enable the seamless flow of value around the world in the face of increasing fragmentation.”
Said Tom Zschach, Swift’s chief innovation officer. Research shows that the current financial infrastructure can actually help link the new digital money to our current payment systems.