SWIFT, the interbank messaging system that allows for cross-border payments, is working with Chainlink, a provider of price feeds and other data to blockchains, on a cross-chain interoperability protocol (CCIP) in an initial proof-of-concept.

The interbank network will be able to interact across all blockchain systems thanks to CCIP, which will make it possible for SWIFT messages to specify on-chain token transfers.

According to Chainlink co-founder Sergey Nazarov, this will speed up the adoption of DLT blockchains and be advantageous to several institutions throughout the capital markets. Nazarov made this statement on Wednesday at the SmartCon 2022 conference in New York City.

“One of the reasons working with Chainlink on CCIP has been successful is that there is “undeniable interest” in crypto from institutional investors. Traditional finance (TradFi) players want access to various digital and traditional assets on one network that can connect different types of asset classes”

“The partnership between Chainlink and SWIFT in cross-chain interoperability will help bridge the gap between traditional and digital assets for TradFi institutions, he added. Chainlink’s native token is LINK.” 

                                                           SWIFT’s Strategy Director Jonathan Ehrenfeld Solé.

Interoperability has become more in demand in recent months as TradFi investors who are investing in digital assets as well as crypto natives look for the next big thing.

On September 22, the cryptography network Lit Protocol announced that it had raised $13 million in Series A financing, which was led by the cryptocurrency investment company 1kx, to employ programmers who would provide decentralized ownership and interoperability amongst protocols. In the meantime, in August, a number of Solana-based initiatives banded together to launch the Open Chat Alliance, an open chat system.

The improvement of information flow between participants and systems that interact during the lifecycle of tokenized assets was the focus of a series of experiments SWIFT announced last year that will be conducted in the first quarter of 2022.