Chainlink oracle network becomes a SWIFT partner

What’s new? SWIFT, a financial messaging system, and Chainlink, a decentralized oracle network, have partnered to work on a cross-chain protocol that unites the sphere of traditional finance and digital assets, CoinDesk reports.

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What else is known about the project? The cross-chain protocol will allow SWIFT messages to manage on-chain token transfers, enabling the interbank network to support all blockchain environments by linking them together. According to Chainlink’s co-founder, this will accelerate the adoption of blockchain-based distributed ledger technology and benefit financial institutions.

According to Jonathan Ehrenfeld Solé, SWIFT’s Strategy Director, one of the reasons for partnership with Chainlink on cross-chain is “undeniable” interest in cryptocurrencies on the part of institutional investors. Traditional finance (TradFi) players want access to a variety of digital and traditional assets on one network. He added that Chainlink and SWIFT’s cross-chain interoperability partnership will help bridge the gap between traditional and digital assets for institutions in the field of TradFi.

SWIFT is an international system for the transmission of financial messages between banks. It was founded in 1973 by 248 banks from 19 countries. Currently, it is represented in 200 countries and processes more than 5 billion financial messages annually. SWIFT is a cooperative society under Belgian law and is owned by its members.

Chainlink is based on the Ethereum blockchain. The platform verifies and provides data from external sources for other smart contracts. In June, the team announced the launch of a staking feature that will appear in the second half of 2022, as well as the development of a new consensus algorithm, Proof of Reserves (PoR), which will increase transaction transparency. The native token of Chainlink (LINK) as of September 29, 07:50 UTC, is trading at $7,689, having lost 3,32% per day (Binance data), the total capitalization of the asset is $ 3,79 billion.

Earlier, SWIFT announced work on a pilot project in the field of blockchain technologies in collaboration with fintech company Symbiont. The pilot project is designed to “help providers distribute data in near real time to global custody clients.”