The interbank messaging system SWIFT has announced a collaboration with blockchain solution provider Chainlink . The partnership aims to improve the technical and technological aspects of connecting the world’s largest financial institutions to blockchain networks . Some of the notable participants include Australia and New Zealand Banking, BNP Paribas, Clearstream, Euroclear, BNY Mellon, Citi and Lloyds Banking .
SWIFT Aims for Unified Interaction Model with Various Blockchain Platforms
SWIFT recognizes the challenges that are posed by a fragmented ecosystem where financial institutions would need to individually connect to each blockchain platform . In order address this, SWIFT Chief Innovation Officer Tom Zschach has pledged to develop a unified interaction model . This model will offer access to various blockchain platforms worldwide and reform connectivity for financial institutions .
As part of a technical experiment the collaboration seeks to evaluate how large institutions can effectively utilize the SWIFT infrastructure for managing the transfer of tokenized assets across different blockchains . On the other hand Chainlink will test the viability of connecting experiment participants to both public and private blockchains which expands the scope of the project .
SWIFT’s API-Based Solution for Central Bank Digital Currencies (CBDC) Settlements
By partnering with Chainlink, SWIFT aims to use the potential of blockchain technology and develop solutions that benefit the global financial industry . The collaboration holds the promise of simplifying connectivity, enhancing the capacity to work together and improving efficiency across various blockchain platforms .
The experiment suggests a significant step towards a more incorporated and interconnected future for the financial ecosystem . As the world’s largest financial institutions participate in refining technical parameters the results of this collaboration could shape the way blockchain is adopted and used within the industry .
SWIFT’s dedication to innovation and collaboration underscores the organization’s recognition of the transformative power of blockchain technology . Through partnerships like this SWIFT continues to adapt and pave the way for a more seamless and interconnected financial landscape in the digital age