Chainlink partners with Swift and will help banks onboard to blockchain networks while establishing interoperability through its Cross-Chain Interoperability Protocol (CCIP).
Top banking players have strong client demand to go beyond custody and make on-chain financial products while allowing them to move between chains.

Blockchain is making faster inroads into the global financial system and Sergey Nazarov, co-founder of Chainlink, is absolutely confident that all value in the future will be on the blockchain. In a major development, Chainlink secured a partnership with interbank payment processor SWIFT in order to deploy blockchain technology.

Nazarov called this partnership since Chainlink has been working on it for the past seven years. Along with SWIFT, Chainlink shall be working along with other players like DTCC and Euroclear. Additionally, they are also planning to work with some of the largest banks such as Citi, and BNP Paribas, as well as custodians like BNY Mellon.

“It’s absolutely inevitable that all the value in the global financial system will be on a #blockchain.”@SergeyNazarov on @CNBChttps://t.co/xmZXxIgnx4

— Chainlink (@chainlink) June 8, 2023

Together, these players will work on blockchains that can be used within their largest category of transactions. Here, the banks and custodians will integrate their systems into the blockchain and then these blockchain networks will be able to communicate with each other. The Chainlink co-founder also added that these blockchains will connect with the public blockchains in order to get access to those markets. said Jonathan Ehrenfeld, head of securities strategy at Swift.

More institutions are beginning to explore how to serve customers on both permissioned and public blockchain networks like Ethereum,

Sergey Nazarov added that the partnership comes amid strong customer demand for the banks. Some of the esteemed customers of the banks have been asking for access to digital assets. This, in turn, forced the banks to build custody solutions. However, these clients have been now asking the banks to go beyond custody and make on-chain financial products while allowing them to move between chains.

SWIFT – Connecting Banks Over Blockchain In Multichain Future

These new experiments continue the success of previous tests conducted in 2022. They will also look into how the industry can overcome challenges related to operations and regulations that financial institutions may face when using blockchain technology.

Tom Zschach, chief innovation officer at Swift, envisions a multichain future connecting different chains. Currently, this isn’t possible but Chainlink seeks to bring this into reality with one integration and save thousands of global banks time and money. Chianlink is exactly providing what SWIFT calls the “enterprise account abstraction layer.” Nazarov said:

What’s missing is the ability to send [assets]from a bank chain to a public chain — banks want to do that”. He also added that asset tokenization is currently in trend and embraced by several banks and other financial institutions having the potential to “10x the blockchain industry size.

To bring the interoperability of private blockchains, SWIFT shall be using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). CCIP is a messaging interface that enables communication between different blockchains. What sets it apart from similar solutions like Axelar’s General Message Passing is its capability to connect with private blockchains and its advanced security features, including an active risk management network.

This makes it highly attractive to major financial institutions. Nazarov highlighted that CCIP utilizes the same security model as Chainlink’s oracle network, which has successfully handled trillions of dollars in value.

Der Beitrag Trillions of Dollars Worth of Value in the Global Financial System Set to Move onto the Blockchain – Will Link Price Skyrocket? erschien zuerst auf Crypto News Flash.

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Filed under: Bitcoin - @ June 9, 2023 11:14 am