- SWIFT, a global financial messaging network, has successfully tested a system that integrates CBDCs and digital assets with current and emerging payment systems.
- Chainlink, a crypto project providing “oracle” services, was used by SWIFT to connect with Sepolia, a popular Ethereum test network.
- These recent trials by SWIFT were aimed at bringing together traditional financial assets and tokenized assets on blockchain networks.
SWIFT, the global financial messaging network, has successfully tested a system that merges Central Bank Digital Currencies (CBDCs) and digital assets with existing and future payment systems. Chainlink, a crypto project that offers “oracle” services, was instrumental in this process, helping SWIFT connect with Sepolia, a well-known Ethereum test network. The trials were aimed at integrating traditional financial assets with tokenized assets on blockchain networks.
Token Transfers Across Different Blockchains
SWIFT had initiated the Cross-Chain Interoperability Protocol (CCIP) about a month ago, a system similar to its own that facilitates communication between different blockchains. This allowed the two companies to send tokens to each other both on testnets and other blockchains. The Cross-Chain Protocol tests started with support for four blockchains: Avalanche, Ethereum, Optimism, and Polygon. DEFi lending platforms Aave and Synthetix also began using CCIP.
Traditional Finance Adapts to Tokenization
The recent trials conducted by SWIFT were focused on the integration of traditional financial assets with tokenized assets on blockchain networks. The goal was to enable traditional financial assets to enter both public and private-closed blockchains. This is aimed at regaining access to crowds that have broken away from the traditional system. The technological lag of traditional finance compared to crypto has been causing crowds to shift towards decentralized areas.
“The Future is in Multi-Chain Systems…”
Sergey Nazarov, one of the founders of Chainlink, which played a significant role in the trials, stated that adoption will accelerate faster than expected. He said, “Adoption will be faster than anticipated, and it will actually come with the simultaneous use of various blockchains. The future is in multi-chain systems…”
Conclusion
In conclusion, the successful trials by SWIFT highlight the growing integration of traditional finance with blockchain technology and digital assets. With the help of Chainlink, SWIFT is paving the way for a future where multiple blockchains coexist and interact seamlessly, fostering faster and more efficient financial transactions.
