SWIFT Partners With Crypto Data Provider Chainlink on Cross-Chain Protocol in TradFi Play

Interest from institutional investors moving into crypto has been “undeniable,” according to SWIFT’s Strategy Director.

AccessTimeIconSep 28, 2022 at 6:47 p.m. UTC
Updated Oct 3, 2022 at 4:10 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

SWIFT, the interbank messaging system that allows for cross-border payments, is working with Chainlink, a provider of price feeds and other data to blockchains, on a cross-chain interoperability protocol (CCIP) in an initial proof-of-concept.

CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the interbank network to be able to communicate across all blockchain environments.

This will help accelerate the adoption of distributed ledger technology (DLT) blockchains and benefit various institutions across capital markets, Chainlink co-founder Sergey Nazarov said at the SmartCon 2022 conference in New York City on Wednesday.

SWIFT’s Strategy Director Jonathan Ehrenfeld Solé said that one of the reasons working with Chainlink on CCIP has been successful is that there is “undeniable interest” in crypto from institutional investors. Traditional finance (TradFi) players want access to various digital and traditional assets on one network that can connect different types of asset classes, Solé said.

The partnership between Chainlink and SWIFT in cross-chain interoperability will help bridge the gap between traditional and digital assets for TradFi institutions, he added. Chainlink's native token is LINK.

The demand for interoperability has increased in recent months, having been touted as the next big development for not just crypto natives but also TradFi investors moving into digital assets.

On Sept. 22, Cryptography network Lit Protocol said it raised $13 million in a Series A round led by crypto investment firm 1kx to hire developers creating decentralized ownership and interoperability across protocols. Meanwhile, in August, several Solana-based projects teamed up to create the Open Chat Alliance, an interoperable messaging platform.

Last year, SWIFT said that it was planning a series of experiments in the first quarter of 2022 around improving the exchange of information between the participants and systems that interact during the lifecycle of tokenized assets.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets