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Chainlink and SWIFT to create crypto transfer infrastructure

Thursday 29 September 2022 14:13 CET | News

Chainlink and SWIFT have announced a proof-of-concept that will allow the international bank cooperative to transfer cryptocurrencies across most blockchains.

 

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.

Chainlink and SWIFT have announced a proof-of-concept that will allow the international bank cooperative to transfer cryptocurrencies across most blockchains.

 

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.

Earlier in September Wise launched SWIFT Receive service, so customers from banks can receive cross-border payments, even if the bank is not connected to SWIFT. The feature allows financial institutions with an existing SWIFT setup to switch to Wise’s service and receive these incoming SWIFT payments more quickly and conveniently. The service is already live with a European neobank.

More: Link


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Keywords: blockchain, partnership, cryptocurrency, money transfer, cross-border payments
Categories: DeFi & Crypto & Web3
Companies: Chainlink, SWIFT
Countries: World
This article is part of category

DeFi & Crypto & Web3

SWIFT

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