Swift in partnership with Chainlinkthe TradFi aroundblockchain experiments. “The discoveries have the potential toeliminate visit friction that slow down growth of tokenized asset markets “according to the banking network.
A year earlier, the benchmark player in finance, Swiftmade official an agreement with Chainlink for blockchain interoperability and tokenization. Since then, the two companies have been hard at work, bringing together an entire ecosystem to carry out a wide range of tokenization projects. experiments.
The messaging service provider has just delivered a first review work in progress. These share the same ambition: to modernize its infrastructures in order to adapt them to blockchain and tokenization.
Swift positions its infrastructure at the entrance
At the end of a series of tests, Swift believes that its infrastructure provides the necessary guarantees by “transparently facilitating the transfer of token value over several public blockchains and private “.
The discoveries have the potential to eliminate the significant friction slowing the growth of tokenized asset markets and enable them to expand globally as they mature,” claims the firm.
Tokenization is still in its infancy, Swift points out. And to pass a milestone, one obstacle must be overcome: the lack of interoperability between different blockchain networks, each with its own functionalities and liquidity profile.
Interoperability between these blockchains is crucial, otherwise financial institutions must establish connections with each platform, creating operational challenges and significant costs,” reminds the messaging service.
More than a dozen financial institutions come together
To remedy the situation, Swift joined forces with Chainlink (creator of the CCIP protocol) and “more than a dozen major financial institutions and market infrastructures”. These include BNP ParibasBNY Mellon, CitiClearstream, Euroclear, Lloyds Banking Group and SIX Digital Exchange (SDX).
The ambition is not only to provide proof of feasibility, but also to enable Swift to maintain its position as a key intermediary in the financial marketplace. In this respect, the company feels it has much to celebrate.
Swift has successfully demonstrated that it can provide a single point of access to multiple networks using existing secure infrastructure, significantly reducing the operational challenges and investments required by institutions to support the development of tokenized assets,” it writes.
Interoperability between blockchains: a growing challenge
To prevent technological disruption, Swift is betting heavily on interoperability, a key factor in the increasing fragmentation of systems. However, this is clearly an obstacle to the development of tokenization.
With the growing number of blockchains, the task of connecting our traditional technical platforms and ensuring interoperability between blockchains represents a growing challenge that we must overcome,” notes Alain Pochet, Head of Client Delivery, Securities Services at BNP Paribas.
Remedies are still far from finalized. Swift reports that work with the financial community is continuing. This includes identifying the most concrete use cases for asset tokenization.
However, a consensus seems to be emerging in this area. In the short term, players are focusing on secondary trading of unlisted assets and private markets.
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