Messaging System SWIFT Joins Hands With Chainlink for Crypto Venture

• Interbank messaging system SWIFT has announced that it is working with Chainlink.
• The announcement was revealed at the SmartCon 2022 Conference in New York.
• “I am very happy that we are working on an initial PoC together with SWIFT on the use of CCIP,” said Chainlink’s founder Sergey Nazarov.

The interbank messaging system, SWIFT has announced that it is working with Chainlink. This partnership enables the firms to work on a proof-of-concept (PoC) project, which would allow, traditional finance firms to transact across blockchain networks.

According to the tweet posted by the Chainlink team, SWIFT uses the Cross-Chain Interoperability Protocol (CCIP) in an initial proof of concept.  To the uninitiated, PoC is the process of verifying that the idea has the potential in a real-world situation.

The Chainlink team explains that CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the SWIFT network become interoperable across all blockchain environments.

The announcement of this joint venture was revealed at the SmartCon 2022 Conference in New York by Chainlink’s co-founder Sergey Nazarov. “I am very happy to announce that we are working on an initial proof-of-concept (PoC) together with SWIFT on the use of CCIP,” said Nazarov at a panel discussion during the conference.

Expressing his motives behind the collaboration, Nazarov said:

In the capital markets to enable communication and movement of tokens between a number of different institutions, in a way that will accelerate the adoption of DLT, blockchains and benefit various institutions all over the capital markets, [this is what we aim for].

Speaking on cross-chain and the communication between chains and institutions in a multichain world, Jonathan Ehrenfeld Sole, the Strategy Director at SWIFT explained that SWIFT is an international cooperative that runs the biggest network in financial services today for capital markets, payments, trade, etc.

Furthermore, he added,

The PoC that we’re doing is the end of a long story. Five or seven years ago was the first time Chainlink and SWIFT started working together.

While SWIFT allows for cross-border payments, Chainlink is a price oracle provider. This is the first time that the two firms have entered into an official partnership.