Swift and Chainlink Will Test Connecting Over a Dozen Financial Institutions to Blockchain Networks
In a new set of experiments, Swift will collaborate with major financial market institutions like the Depository Trust and Clearing Corporation (DTCC), Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear and Lloyds Banking Group.
Jun 6, 2023 at 2:04 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/BHL4577EEZBE3P4JUI7N2AGLTY.jpg)
Sergey Nazarov (left) and Jonathan Ehrenfeld Solé (Chainlink Labs)
Swift, the interbank messaging system and Chainlink (LINK), a provider of real world data to blockchains, will be collaborating with dozens of financial institutions to test how they can connect with multiple blockchain networks, according to a press release on Tuesday.
In a new set of experiments, Swift will partner with major traditional financial institutions like the Depository Trust and Clearing Corporation (DTCC), Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear and Lloyds Banking Group. The goal is to test how these institutions can use Swift's infrastructure to instruct the transfer of tokenized assets across blockchains, the press release said.
Chainlink will provide connectivity across both public and private blockchains for these experiments, the statement added. The Swift and Chainlink partnership was first announced last year at Chainlink's annual conference SmartCon.
In capital markets, there is a growing view that blockchain technology could "generate efficiencies, reduce costs," and a simplified settlement processes could attract more investors into the private markets as well as increase liquidity, Swift said in its release.
Not only is this an important move for financial institutions, but it also represents a significant step for the crypto industry, Chainlink co-founder Sergey Nazarov told CoinDesk.
"Banks hold the largest amount of capital globally and if our industry is going to grow past the single digit trillions, then the banks have to come in and in reality, I think it'll be the banks and their clients that grow the blockchain industry past $10 trillion," Nazarov said. Currently the overall crypto market capitalization stands at $1.08 trillion according to CoinMarketCap data.
UPDATE (June 6, 15:07 UTC): Adds DTCC as part of the financial institutions.
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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.
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