Chainlink, Swift, and ten banks partnered to experiment with the capability to transfer financial assets across blockchain platforms and traditional rails.
Today, Swift announced that it had fruitfully carried out several blockchain interoperability tests with more than ten financial entities, for instance, BNP Paribas, City, and BNY Mellon. The interbank messaging service used Chainlink, an oracle provider, to create a link with Sepolia, a famous Ethereum testnet.
Interoperability Protocol Prioritizes Tokenization Across Blockchain Networks
More than a month following the launch of the new Cross-Chain Interoperability Protocol (CCIP), the two companies successfully sent tokenized assets between the testnet and the rest of the blockchains. CCIP is a form of blockchain network that is not different from Swift. The experiments focused on tokenization, which connects traditional financial assets to blockchain networks.
Tokenization has been popular in recent times. According to Larry Fink, BlackRock’s chief executive officer, it is the ‘future markets generation.’ Further, Avalanche introduced a fund of $50 million committed to the niche.
Cross-Chain Interoperability Protocol (CCIP) Gaining Popularity
The cross-chain protocol began by supporting four blockchains: Optimism, Avalanche, Polygon, and Ethereum. The interoperability is set to boost usage as communities embrace the protocol.
Further, lending protocols Aave and Synthetix have adopted the Cross-Chain Interoperability Protocol. Swift seeks to create a safe and quick connection between traditional finance and several private and public blockchains for tokenized asset transfer.
Sergey Nazarov, Chainlink’s cofounder, also claimed that adoption will occur via several blockchain technologies simultaneously. This indicates that a multichain blockchain ecosystem is going to be the future.
Integrating CCIP and SWIFT Critical to Guarantee Interoperable Blockchains
Nazarov stated that a combination of CCIP and Swift enabled them to show that this new interoperability level across several blockchains is possible with little resources from even the biggest market infrastructures and banks.
Tom Zshach, Swift’s chief innovation officer, claimed that the experiments showed Swift infrastructures’ capability to offer that ‘central connectivity point’ to link to various blockchains and promote tokenization development.
Editorial credit: Ira Lichi / Shutterstock.com
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