Interbank messaging system SWIFT has partnered Chainlink to work on a proof-of-concept project which would allow traditional finance firms the ability to transact across blockchain networks.
Chainlink co-founder Sergey Nazarov announced the project at its SmartCon 2022 Conference in New York on Sept. 28 alongside SWIFT strategy director Jonathan Ehrenfeld Solé.
The PoC utilizes Chainlink’s cross-chain interoperability protocol, allowing SWIFT messages to instruct token transfers across nearly every blockchain network, which, according to Nazarov, will accelerate the adoption of distributed ledger technology blockchains across capital markets and traditional finance.
The SWIFT interbank messaging system is the most widely used platform for traditional cross-border fiat transactions, connecting over 11,000 banks around the world.
Chainlink added this collaboration with SWIFT allows financial institutions to gain blockchain capability without replacing, developing and integrating new connectivity into legacy systems, something it said would require substantial modifications with an exceptionally high cost.
