Chainlink and SWIFT to develop cross-chain transaction solution

The Chainlink decentralized oracle network team and SWIFT, the operator of the international interbank information-transfer system, have agreed to cooperate. The partners will develop a mechanism enabling traditional financial institutions to conduct cryptocurrency transfers.

SWIFT is using the Cross-Chain Interoperability Protocol (CCIP) in an initial proof of concept.

CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the SWIFT network become interoperable across all blockchain environments.https://t.co/8GOBNhzwCk pic.twitter.com/Pvm0Cex45e

— Chainlink (@chainlink) September 28, 2022

The Cross-Chain Interoperability Protocol (CCIP) project will undergo pilot testing. The protocol will enable on-chain transfers of crypto assets to be instructed in interbank messages.

SWIFT’s Chief Strategy Officer Jonathan Ehrenfeld-Sole noted that there is an undeniable interest among institutional investors in digital assets. He said that financial players want access to both digital and traditional instruments on a single platform.

Chainlink co-founder Sergey Nazarov noted that CCIP will allow institutions to avoid replacing, developing and integrating new connections into aging systems. This comes with “exceedingly high” costs due to the need for substantial modifications.

SWIFT объединяет more than 11,000 financial institutions from over 200 countries. The system processes 32 million messages daily.

In May 2022 the operator SWIFT announced testing the cross-compatibility of various platforms CBDC in cross-border payments.

In November 2021 Nazarov predicted a mass influx of institutional players into the DeFi sector in the current year.

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