Blockchain
Swift – the interbank messaging system and Chainlink (LINK), a provider of real-world data for blockchains, will work with dozens of financial institutions to test how they can connect to multiple blockchain networks, according to a press release on Tuesday.
In a new series of experiments, Swift will partner with major TradFi institutions such as Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear and Lloyds Banking Group. The goal is to test how these institutions can use the Swift’s infrastructure to instruct the transfer of tokenized assets across blockchains, the press release said.
Chainlink will provide connectivity between both public and private blockchains for these experiments, the statement said. The collaboration between Swift and Chainlink was first announced last year at Chainlink’s annual conference SmartCon.
In the capital markets, there is a growing view that blockchain technology could “generate efficiencies, reduce costs,” and a simplified settlement process could attract more investors to private markets and increase liquidity, Swift said in its release.
Not only is this an important step for financial institutions, but it also represents an important step for the crypto industry, Chainlink co-founder Sergey Nazarov told CoinDesk.
“Banks hold the largest amount of capital globally and if our industry grows past the single digit trillions then the banks need to get involved and in reality I think it will be the banks and their clients that will grow the blockchain industry over $10 trillion, said Nazarov. Currently, the crypto market cap stands at $1.08 trillion according to CoinMarketCap data.
Read more: SWIFT partners with Chainlink: This is the low point of the Blockchain data provider
