Key Takeaways
- Interbank messaging system for cross-border payments, SWIFT, has struck a collaborative deal with one of the biggest suppliers of price feeds and other data to blockchains, Chainlink.
- This partnership is established to work on a proof-of-concept project.
Interbank messaging system for cross-border payments, SWIFT, has struck a collaborative deal with one of the biggest suppliers of price feeds and other data to blockchains, Chainlink. This partnership is established to work on a proof-of-concept project that utilizes a cross-chain interoperability protocol (CCI). On September 28, 2022, the announcement was made official at the SmartCon 2022 Conference in New York by Sergey Nzarov, co-founder of Chainlink, and Jonathan Ehrenfeld Sole, head of Swift strategy.
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SWIFT partners with Chainlink for cross-chain crypto transfer project
This collaboration is definitely a passage into interesting and mind-blowing upgrades. First, the interbank network will be able to communicate through blockchain channels because of CCIP, ensuring that SWIFT messages are specific to on-chain token transactions. According to reports, there are more than 11,000 banks globally-connected, and interestingly, the SWIFT interbank messaging system is the most used and famous for common transnational fiat transfers.
In August 2022, the SWIFT interbank messaging system cataloged a whopping 44.8 million messages daily. Transactions processed on the SWIFT network are quite slow and can require numerous days to be finalized. To solve this, the organization has made insightful inquiries into DLT technologies, central bank digital currencies (CBDCs), and blockchain technologies to fasten payment and transactions.
Chainlink added that this collaboration with SWIFT ensures that financial corporations have access to additional blockchain capacity, interestingly, without the need to develop, substitute, and incorporate new connectivity into traditional systems, which was explained to require ample moderation at an absurdly high cost. Let us know what you think about this in the comment section.
