Swift Announces Successful Tokenization Experiment Using Chainlink’s CCIP

Global financial messaging network – Swift – announced successfully facilitating a variety of blockchain interoperability tests with multiple financial institutions like Citi, SIX Digital Exchange (SDX), BNP Paribas, and BNY Mellon.

For this purpose, Swift tapped the Web3 services platform Chainlink’s Cross-Chain Interoperability Protocol (CCIP)

• The company said the experiments are part of its wider strategy to ensure secure, global interoperability as new technologies and platforms surface. They build on work over the past few years to show how Swift’s infrastructure could support the financial community in interconnecting Central Bank Digital Currencies (CBDCs) and other digital assets with new and existing payment systems.
• The development comes after Chainlink and Swift announced that they would be collaborating with numerous financial institutions to assess the feasibility of integrating with diverse blockchain networks in June.
• Swift’s Chief Innovation Officer, Tom Zschach, commented on the latest development,

“Interoperability is at the heart of everything we are doing at Swift to facilitate the seamless flow of value across the world in the face of increasing fragmentation. For tokenization to reach its potential, institutions will need to be able to seamlessly connect with the whole financial ecosystem.”

• According to the exec, the experiments have demonstrated that the existing Swift infrastructure can provide that central point of connectivity, eliminating a major hurdle in the development of tokenization.
• Chainlink, on the other hand, announced the launch of CCIP in July. The Oracle provider’s co-founder and acting CEO Sergey Nazarov had previously noted that the aim is to position the protocol as the new gold standard for cross-chain interoperability.