Chainlink and SWIFT have launched a tool for banking on-chain transactions

What’s new? The team of the Chainlink decentralized oracle network, in conjunction with the global financial information exchange network SWIFT, has unveiled a new solution for banks to interact with blockchain technology. It will enable settlement in digital assets, bringing together the traditional finance sector with decentralized financial (DeFi) protocols.

Source: X.com

What else is known? According to hainlink co-founder Sergey Nazarov, the solution will enable pre-settlement and confirmation of transactions using established SWIFT standards, which are already widely used in traditional finance. Once confirmed, Chainlink’s infrastructure will transfer these messages to the blockchain, allowing institutions to conduct on-chain transactions.

The announcement was made during the Sibos conference in Beijing, organized by SWIFT. There, Nazarov talked about another new product, Blockchain Privacy Manager (BPM), which is designed to provide privacy and integration of private blockchains with the public Chainlink platform.

The developer noted that the lack of privacy in the blockchain industry is currently holding capital markets back from utilizing digital assets and blockchains.

BPM is aimed at financial institutions that want to ensure privacy when using blockchain applications, and encrypts private transactions using Chainlink Cross-Chain Interoperability Protocol (CCIP).

Chainlink’s CCIP, launched last year, allows tokens to be moved between public and private banking blockchains and runs multi-chain smart contracts, solving the problem of liquidity fragmentation. The protocol is already used by ANZ Bank, BNP Paribas, BNY Mellon, Citi, Lloyds Banking Group, and others, and the Chainlink team opened up access to the protocol at the end of April.

In May this year, Chainlink partnered with e-commerce solutions provider Rapid Addition to launch a CCIP-based blockchain adapter for banks.

BPM combined with the new SWIFT integration will allow institutions to conduct sensitive transactions, including trading private tokenized assets or cross-border payments.

In early October, amid news of the collaboration with SWIFT, Chainlink’s (LINK) native token was among the top 3 most talked about cryptocurrencies.

In late August, the first Hong Kong-licensed crypto exchange HashKey Hong Kong, whose parent company’s valuation exceeds $1 billion, received permission to launch LINK trading for retail investors.

LINK ranks 18th in the overall ranking of cryptocurrencies by market capitalization with a figure of $7,13 billion and is trading at $11,38, having lost 6,7% over the day. The weekly drop amounted to 0,7%, and the asset has lost 24% in value since the beginning of the year.