SWIFT will start testing blockchain-based operations

The international payment system SWIFT has entered into an agreement with the oracle provider Chainlink to test payment transactions using different blockchains. This was announced by Chainlink co-founder Sergey Nazarov and SWIFT Chief Strategic Development Officer Jonathan Ehrenfeld Sole at the SmartCon 2022 conference in New York.

For the initial proof of concept, SWIFT will use the Cross-Chain Interoperability Protocol (CCIP). It will allow traditional financial organizations to access digital assets and fiat money on the same platform. At the same time, transactions can take place through different blockchains. Thanks to the CCIP protocol, SWIFT will report the transfer of crypto assets in almost all blockchains.

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 cooperation of the two companies will allow financial institutions to use the capabilities of the blockchain without developing new services. In addition, there will be no need to modify outdated systems, as this would entail significant costs. Nazarov added that the initiative will accelerate the introduction of blockchain and distributed Ledger technology (DLT) into financial markets.

In September, the SWIFT payment system launched a pilot project with fintech company Symbiont. The goal is to provide accurate data to financial companies using blockchain technologies. The initiative was joined by financial giants Vanguard, Citigroup, American Century Investments, and Northern Trust. Industry experts note that the new approach will help the global banking operator to increase its relevance when different countries have their own digital assets (CBDCs).