Chainlink will enable the SWIFT network to transfer cryptos

The interbank messaging system SWIFT will work with Chainlink to enable financial firms to transact on different blockchains.

Chainlink is an ecosystem based on the Ethereum blockchain, a well-known data exchange protocol in the cryptocurrency world that allows information to be stored and transmitted securely and without a controlling body. The technology on which Chainlink is based consists of a network of oracles that aim to bring reliable data feeding the chain into smart contracts.

Chainlink and SWIFT: To accelerate the adoption of blockchain

According to their statement, this collaboration will bridge the gap between traditional finance and digital assets.

In fact, the Swiss interbank messaging system SWIFT will use Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to be able to transfer digital assets across multiple blockchains.

As a result, the SWIFT network should soon become capable of ordering crypto transfers across almost any blockchain environment. This is to enable financial institutions to become compatible with this ecosystem “without facing high upfront costs and development challenges,” in the words of the Chainlink project.

According to Sergey Nazarov, this collaboration should ultimately accelerate the adoption of distributed ledger blockchain (DLT) technology in the capital markets and more broadly for traditional finance.

SWIFT’s interest in blockchain is not new, however: last May, the network partnered with French consulting firm Capgemini to test payments in central bank digital currencies (CBDC).