Chainlink and SWIFT to connect traditional banks to blockchains

The Chainlink oracle network and the SWIFT payments system заключили соглашения with a number of traditional financial institutions to connect them to blockchain networks.

Among the partners: Citi, BNY Mellon, Lloyds Banking Group, BNP Paribas, Clearstream, Euroclear, SIX Digital Exchange, the Depository Trust & Clearing Corporation, as well as the Australia and New Zealand Banking Group.

The initiative aims to test how organisations can connect to different networks for the transfer of tokenised assets.

According to the press release, Chainlink will provide connectivity to both public and private blockchains. The project first came to light in September 2022.

A cross-network interoperability protocol, jointly developed by the companies, is used to enable connections to blockchains.

According to SWIFT, it is unlikely that a single blockchain will dominate this area. Each network will be able to perform a narrowly targeted function for a given financial institution, the company said.

According to Chainlink co-founder Sergey Nazarov, the collaboration will move traditional markets into the world of cryptocurrencies and DeFi applications.

“Tokenised-asset trading remains a niche activity in the regulated space. For market-scale, financial institutions must be able to interact easily with multiple blockchain networks in a safe and reliable manner,” the press release said.

SWIFT added that it is unlikely that one particular blockchain will dominate in this area. Each network will be able to perform a narrowly targeted function for a given financial institution, the company said.

According to Chainlink co-founder Sergey Nazarov, the collaboration will move traditional markets into the world of cryptocurrencies and DeFi applications.

“If even a small portion of the quadrillions of dollars flowing through SWIFT and its more than 11,000 banking partners makes its way into blockchains, the entire industry could grow several times over,” Nazarov said.

Earlier in March 2023, Chainlink launched the Functions project, connecting decentralized applications with traditional web platforms.

Earlier, the Israeli startup StarkWare expanded its collaboration with Chainlink to accelerate the deployment of its L2 solution StarkNet.