SWIFT Teams Up with Chainlink to Build a Cross-Chain Crypto Transfer Project

Both SWIFT and Chainlink aim to build a Proof-of-Concept (PoC) project for the 11,000 banks.

SWIFT Teams Up with Chainlink to Build a Cross-chain Crypto Transfer Project

SWIFT, the Society for Worldwide Interbank Financial Telecommunication, has announced a partnership with the popular smart contract network, Chainlink, to build a cross-chain interoperability protocol (CCIP).

Expects to Accelerate Adoption

On Wednesday, September 28, SWIFT announced that it is working with Chainlink to build a proof-of-concept (PoC) project focused on allowing traditional finance firms to transact across blockchain networks.

SWIFT will be using Chainlink’s CCIP to send messages to instruct on-chain token transfers and communicate across blockchains. Finance firms will be able to access nearly every blockchain via the one network that will be built.

The CEO of Chainlink, Sergey Nazarov, said at the SmartCon 2022 conference in New York that the project will help accelerate the adoption of distributed ledger technology (DLT) blockchains and benefit various institutions across capital markets.

Cross-Chain Is the Future

Interoperability is now regarded as one of the biggest developments in crypto and the traditional finance industry. Its use in facilitating effective data exchange between systems is growing by the day.

The PoC project being built by Chainlink will mean that the 11,000 banks connected to SWIFT will have the option to engage in token transfers across chains—a typically very risky endeavor.

On the Flipside

  • Interoperability has also gathered negative attention, with hackers stealing over $2 billion this year from cross-chain bridges. 

Why You Should Care

The cross-chain interoperability project being built by Chainlink and SWIFT aims to bridge the gap between traditional banks and blockchain projects.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia