Chainlink and SWIFT to create crypto transfer infrastructure

The collaborative proof-of-concept would allow SWIFT to instruct token transfers across nearly every blockchain environment. Chainlink added that this would allow financial institutions to become blockchain-capable without confronting high upfront costs and development challenges.

The upcoming proof-of-concept will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP), a global standard for cross-chain messaging, data, and token transfer that was first announced in August 2021. As representatives say, the cooperation would enable the communications and movement of tokens between several different institutions.

This this is not the first time Chainlink and SWIFT have worked together. Five years ago, the entities worked on another proof-of-concept concerning bond issuance and redemption. These initiatives represent a collaboration between two of the major players in their respective industries. Chainlink is a top 25 blockchain with a market cap of USD 3.9 billion. SWIFT, meanwhile, is the leading global financial messaging network. It is connected to about 11.000 banks and handles over five billion financial messages annually.

Recent developments by SWIFT

SWIFT also recently partnered US-fintech Symbiont in order to pilot a blockchain project. The project aims to automate corporate action workflow using Symbiont’s Assembly technology platform. By tapping into the platform’s smart contracts and blockchain capabilities, SWIFT can improve the networking of the institutions connected to SWIFT at a global level.

Within the cooperation, corporate action data from SWIFT messages will be translated by SWIFT’s translator tool and uploaded in Symbiont’s blockchain. According to SWIFT representatives Symbiont’s smart contract technology can compare information shared between participants and flag inconsistencies, contradictions, or discrepancies.