Payments giant Swift is teaming up with Chainlink (LINK) and several financial giants for a blockchain interoperability settlement experiment.
According to a new announcement from Swift, the payments company says it is testing blockchain interoperability with over a dozen institutions.
Swift says that institutions that want to interact with tokenized assets face the problem of blockchains not being interoperable, with each having its own functionality or liquidity, thus creating friction and overhead for the firms.
Removing this friction would, according to Swift, aid in the institutional adoption of tokenized assets and long-term market adoption.
“We’re collaborating with the Swift community globally to test how institutions can use their Swift connection to seamlessly interoperate with the multitude of blockchain networks emerging around the world…
In a new set of experiments, we will collaborate with more than a dozen major financial institutions and FMIs including Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX) and The Depository Trust & Clearing Corporation (DTCC) – to test how firms can leverage their existing Swift infrastructure to efficiently instruct the transfer of tokenized value over a range of public and private blockchain networks.
Chainlink, a leading Web3 services platform, will provide connectivity across public and private blockchains for these experiments.”
Chainlink is a decentralized oracle network that provides secure and reliable data feeds to smart contracts on the Ethereum (ETH) blockchain.
According to Tom Zschach, Chief Innovation Officer at Swift,
“There’s unlikely to be a single prevailing blockchain network.
We would expect to see a multitude of different platforms emerging, each serving different customer segments with their own bespoke capabilities and requirements. In such a highly fragmented ecosystem, it would simply not be feasible for financial institutions to connect to each and every platform individually. That’s why the community is working with Swift to develop an interoperability model that would enable access to different platforms globally.”
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