Chainlink (LINK) creator, Sergey Nazarov, recently announced a significant milestone in the partnership between Chainlink and SWIFT, a major payments giant. Speaking at the Sibos 2024 conference in Beijing, Nazarov revealed that Chainlink has successfully developed a system that bridges the gap between traditional finance (TradFi) and blockchain technology.
Nazarov expressed his excitement about the collaboration with SWIFT, stating that they have been working together for many years to enable the use of SWIFT messages and standards to interact with blockchains seamlessly. He unveiled that the system presented in a pilot with SWIFT last year has now become a reality, marking the pre-production stage where institutions can start utilizing the technology with their existing systems.
Under the new system, the initial stages of a transaction will take place over the traditional SWIFT network before Chainlink technology steps in to bring the information onto the blockchain and convert it into a blockchain transaction. Nazarov explained that the process involves a pre-settlement phase where transaction details are agreed upon using SWIFT messages, followed by interaction with a blockchain for the actual digital asset transaction. This is where Chainlink plays a crucial role in translating SWIFT messages into blockchain events.
The collaboration between Chainlink and SWIFT has the potential to revolutionize the way financial institutions carry out transactions by combining the efficiency of traditional finance with the security and transparency of blockchain technology. This integration opens up opportunities for various asset transactions, including tokenized funds, real-world assets, central bank digital currencies, and other on-chain assets.
As of the latest update, Chainlink is trading at $11.24, experiencing a 7% decline in the past 24 hours. The progress made in the partnership with SWIFT signifies a significant step forward in the adoption of blockchain technology within the traditional finance sector.
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In conclusion, the collaboration between Chainlink and SWIFT is paving the way for enhanced interoperability between traditional finance systems and blockchain technology. With Chainlink’s innovative solutions, financial institutions can streamline their operations and tap into the potential of blockchain for secure and efficient transactions.