SWIFT, the global financial messaging network, has released the results of a series of experiments that demonstrate its ability to facilitate the transfer of tokenized assets across multiple blockchains. Conducted in partnership with Chainlink, a leading Web3 services platform, the experiments also involved a consortium of major financial institutions, including ANZ, BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust & Clearing Corporation.
According to SWIFT’s press release, the experiments aimed to address the challenge of interoperability among various blockchains, each with its unique functionalities and liquidity profiles. SWIFT’s existing secure infrastructure was shown to act as a single point of access to multiple blockchain networks, thereby reducing operational and financial burdens for institutions. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) played a pivotal role in ensuring seamless communication between different blockchains.
The tests went beyond proving the capabilities of SWIFT’s infrastructure. They also advanced the understanding of the technical and business requirements for interacting with both business and public blockchains. The experiments explored various aspects, such as data privacy, governance, operational risk, and legal liability. Transfers of simulated tokenized assets were conducted between wallets on the same public blockchain, between wallets on different public blockchains, and between public and private blockchain networks.
Alexandre Kech, Head Digital Securities at SDX, emphasized the importance of these experiments for understanding how financial institutions can leverage blockchain for institutional business. He mentioned the potential for building a regulated, global, digital asset-agnostic infrastructure that operates around the clock.
Sergey Nazarov, Co-Founder at Chainlink, stated that the experiments made it evident that both leading banks and market infrastructures are optimistic about the broader adoption of digital assets. He noted that the collaboration between SWIFT, Chainlink, and over ten major financial institutions proved that cross-chain interoperability is crucial for the next phase of digital asset adoption.
SWIFT plans to continue its work with the financial community to identify the most promising use cases for tokenized assets. The focus in the near term is expected to be on the secondary trading of non-listed assets and private markets.
Featured Image Credit: Midjourney
