SWIFT Successfully Tests Interaction with Chainlink's CCIP
SWIFT, along with more than 12 major financial institutions, has successfully tested the interaction with Chainlink's cross-chain interoperability protocol (CCIP), ushering in a new era of integration between banks and blockchain.
SWIFT Successfully Tests Interaction with Chainlink's CCIP
Following the mainnet deployment of the CCIP cross-chain interaction protocol in mid-July, the Chainlink community received another positive update at the end of August. The global payment messaging system SWIFT announced a successful test of interaction between its network and Chainlink's CCIP.
"Working with more than a dozen major financial institutions and market infrastructures and Chainlink, a leading Web3 services platform, Swift has successfully demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure,… pic.twitter.com/Z7qplaMLXg
— Chainlink (@chainlink) September 2, 2023
SWIFT emphasizes that its existing messaging standards, combined with CCIP developed by Chainlink, have the potential to create a superior solution to enhance interaction between traditional financial systems and emerging blockchain technology.
In fact, this collaborative testing is not recent. As reported by Coin68 in late September 2022, Chainlink partnered with SWIFT to support cross-chain transactions using CCIP technology. The testing process extended until the CCIP mainnet launch and ultimately yielded positive results.
According to industry experts, this represents a significant advancement in the blockchain field by demonstrating:
Traditional financial organizations can interact with tokenized assets.
Financial institutions can conduct transactions on both public and private blockchain platforms.
Utilizing existing systems in conjunction with CCIP without the need to build new infrastructure.
Diagram illustrating the interaction between SWIFT and CCIP
One of the major hurdles for financial institutions today is the difficulty in developing and adopting new technology infrastructures. For instance, requiring banks to adopt an entirely new blockchain framework to replace SWIFT is impractical.
Now, the test results have proven that banks can integrate SWIFT and CCIP interactions without building new infrastructure.
The 2008 financial crisis led to the creation of Bitcoin because toxic assets were created by a poorly managed financial system that left society with the costs. We have an opportunity to build a better financial system that is cryptographically guaranteed, transparent, and gives… pic.twitter.com/c0YB8Ko2N0
— Sergey Nazarov (@SergeyNazarov) July 20, 2023
SWIFT noted it collaborated with several financial institutions such as Australia and New Zealand Banking Group Limited, BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange, and The Depository Trust & Clearing Corporation.
According to SWIFT, the results "successfully demonstrate" that blockchain and traditional banking systems can securely connect to conduct transactions. They emphasized in their report:
"The test has highlighted the role of blockchain interoperability protocols in transmitting data and value across blockchains."
Moreover, this success partly affirms the vision of Chainlink's founder, Sergey Nazarov.
When CCIP mainnet launched in July, Nazarov declared that banks could apply its newly launched CCIP protocol to connect with various blockchains, confidently stating that CCIP could help funnel trillions of USD from traditional finance into the cryptocurrency market.
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