Swift Successfully Transfers Tokens Between Blockchains in Landmark Chainlink Experiment
Date: 2023-08-31 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The Swift Network has announced the results of the successful completion of a tokenization experiment involving the transfer of coins across multiple blockchains.
The interbank messaging infrastructure acknowledged this in an Aug. 31 press release, stating that it had been working with Chainlink and several financial institutions to experiment.
The following financial institutions participated in the experiment: BNY Mellon, Lloyds Banking Group, Citi New Zealand Banking Group and Euroclear.
To carry out the experiment, Swift connected to the Ethereum (ETH) Sepolia test network to conduct the experiment and used the CCCIP Chainlink (; LINK) interconnection protocol to send tokenized assets to various public blockchains.
Along with demonstrating that financial institutions can use Swift to connect to different blockchains, the experiment also used an interoperability protocol to securely transfer data to others.
“Swift has shown that it can provide the ability to provide a single point of access to multiple networks with the support of an established secure infrastructure, and thereby significantly reduce the operational problems of institutions supporting the development of tokenized assets.
Why is it necessary for tokenization?
The success of the experiment, according to Swift, is an important step for the implementation of tokenization. The results can be used to smooth out frictions that have hindered the growth of the ticked asset market.
The most important friction here is the need for interoperability between blockchain networks, which appears to be a major operational and investment challenge for institutions. For institutional adoption of tokenization, solving this problem can open the floodgates.
According to the company, 97% of institutional investors believe the revolution in asset management will be brought about by tokenization. These results could be monumental for tokenization to live up to its potential.
Swift Chief Innovation Officer Tom Zshach gave his take on the experiment.
Interoperability is the foundation of everything we do in Swift to ensure that value flows seamlessly around the world in the face of growing fragmentation.”
According to the results of the experiment, financial institutions were optimistic about the outcome. For them, this is a possibility that will be explored in the near future.
Serge Nazarov, being the co-founder of Chainlink and the head of the banking group, states: “The banking industry is expected to have a wider adoption of digital assets. And this will happen using several different blockchain technologies at the same time.”
