SWIFT flags compatibility hurdles between TradFi and blockchains

In the near term, combining traditional financial systems with blockchains is preferable to tokenised assets in a single registry. To this conclusion пришли in SWIFT.

The organisation’s specialists emphasised that the phased, step-by-step implementation of the first approach is more justified.

Analysts say that there is currently no secure interoperability between different blockchains. This leads to various inefficiencies and a poor user experience. The organisation is convinced there is potential to address the issue of functional interoperability.

Working with various financial institutions and the blockchain oracle network Chainlink, SWIFT has demonstrated the viability of a single access point to multiple blockchains built on existing infrastructure.

According to the report authors, this significantly reduces operational problems and the costs for institutions to support tokenised assets.

According to SWIFT’s Director of Innovation, Tom Tszhaka, tokenisation will fully unlock the potential once institutions are connected to the entire financial ecosystem.

The report highlights the technology’s advantages: increased liquidity and automation, as well as high transparency and security.

A lack of thorough regulatory and legal groundwork remains a barrier to tokenisation adoption, the specialists explained.

As reported, Chainlink договорились о сотрудничестве in September 2022.

The organisation employs Cross-Chain Interoperability Protocol (CCIP) — a cross-chain interoperability protocol. The solution is designed to unify dapps across both public and private blockchains. CCIP will allow interbank messages to carry instructions for on-chain transfers of crypto assets.

In July 2022 Chainlink opened early access to the protocol in testnets Arbitrum Goerli, Avalanche Fuji, Ethereum Sepolia, Optimism Goerli and Polygon Mumbai.