- Chainlink and SWIFT partnered on a cross-chain interoperability protocol.
- This project helps to close the barrier between traditional and digital assets.
Chainlink (LINK), the price feed provider, has teamed with SWIFT, a global financial messaging, on a cross-chain interoperability protocol (CCIP). This Chainlink’s proof-of-concept (POC) project would offer traditional finance institutions the capability to communicate over blockchain networks.
Sergey Nazarov, a co-founder of Chainlink, and Jonathan Ehrenfeld Sole, head of SWIFT strategy, made the project announcement on September 28 at the SmartCon 2022 Conference in New York.
SWIFT is using the Cross-Chain Interoperability Protocol (CCIP) in an initial proof of concept.
CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the SWIFT network become interoperable across all blockchain environments.https://t.co/8GOBNhzwCk pic.twitter.com/Pvm0Cex45e
— Chainlink (@chainlink) September 28, 2022
The SWIFT Trail Run
SWIFT messaging guidelines for on-chain token transfers will be made possible by CCIP and continue to strengthen the interbank network and all blockchain ecosystems. In cross-chain interoperability, the relationship between Chainlink and SWIFT would close the barrier between traditional and digital assets for TradFi institutions, as per Jonathan Ehrenfeld.
According to Chainlink co-founder Sergey Nazarov, cross-chain interoperability protocol will boost the adoption of distributed ledger technology (DLT) blockchains. Also, it will beneficial to many institutions throughout the capital markets. Meanwhile, transactions on the SWIFT network take some days to complete. Last year, SWIFT announced that it is planning a range of experiments in the first quarter of 2022.
At the time of writing, Chainlink (LINK) traded at $7.72 with a 24-hour trading volume of $1,082,501,794, and the LINK price increased by over 15% in the last seven days. But Chainlink is down 3.64% in the last 24 hours with a market cap of $3 billion, as per CoinMarketCap.
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