SWIFT Embraces Crypto: Integration With Chainlink (LINK) A Success?

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) announced a success with its integration with Chainlink (LINK). The international entity has been experimenting with blockchain technology, both private and public networks, and finally revealed the progress of its efforts.

Chainlink To Improve International Payment Rails?

Per an official statement, SWIFT claims that its infrastructure can “seamlessly” integrate with blockchain technology to enable users to transfer “tokenized value” across multiple networks. In that way, the international monetary system aims to reduce friction from these transfers and allow the tokenized asset markets to “scale globally.”

A tokenized asset is a “real-world” asset, such as a stock, property, or commodity, whose value is linked to a digital asset. This process is intended to allow its users to easily trade them without the need for a third party to intermediate the transaction or for a third party to verify the value of the underlying asset.

In theory, the tokenized asset market has the potential to be worth trillions of dollars, but its adoption has been relatively slow compared to cryptocurrencies. As mentioned, the partnership between SWIFT and Chainlink (LINK) seeks to change this trend.

Data from a poll conducted by the financial institution indicates that over 97% of institutional investors believe that tokenization of real-world assets has the potential to “revolutionize asset management and be a positive force in the industry.”

However, these institutional investors claim that blockchain-based projects must solve the interoperability issue to achieve this potential. The financial institution stated the following about their experiments with Chainlink:

The experiments are part of Swift’s wider strategy to ensure secure, global interoperability as new technologies and platforms emerge. They build on work over the past few years to show how Swift infrastructure could support the financial community in interconnecting Central Bank Digital Currencies (CBDCs) and other digital assets with new and existing payments systems.