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News/Chainlink and SWIFT Ushering New Era of Tokenized Finance

Chainlink and SWIFT Ushering New Era of Tokenized Finance

Aug 31 2023

10 months ago2 minutes read
A sleek robot stands beside a set of scales encapsulating the tension between traditional and digital assets

Chainlink and SWIFT: Dawn of Tokenized Finance

Written by Van

Chainlink and SWIFT have just pulled off a game-changer in the world of finance. They've successfully tested blockchain interoperability with big-name banks like Citi, BNP Paribas, and BNY Mellon. This isn't just a tech experiment; it's a seismic shift that could redefine how assets move across both traditional and blockchain networks. Let's dive into the nitty-gritty.

The Experiment: Bridging Two Worlds

A digital map of the world serves as the canvas, glowing with nodes that represent major financial centers and blockchain hubs (1).webp

SWIFT, the global interbank messaging giant, joined forces with Chainlink, the oracle service provider, to connect with Sepolia, a well-known Ethereum testnet. This groundbreaking collaboration, which could influence crypto coin prices, was built on SWIFT's newly launched Cross-Chain Interoperability Protocol (CCIP). The goal? To send tokenized assets seamlessly between the testnet and other blockchains.

Why Tokenization Matters

Tokenization is the buzzword of the moment, and for good reason. It's about converting traditional financial assets into blockchain tokens. Think of it as the financial world's version of a universal translator. Even BlackRock's CEO, Larry Fink, dubbed it the "next generation of markets."

The Role of CCIP

CCIP isn't just a fancy acronym; it's a groundbreaking network that started with support for four blockchains: Avalanche, Ethereum, Optimism, and Polygon. Already embraced by DeFi leaders like Aave and Synthetix, the protocol could become a key factor in crypto price movements.

The Future: A Multichain Ecosystem

Sergey Nazarov, Chainlink's co-founder, envisions a future where multiple blockchains coexist and interact. This isn't just wishful thinking; it's a strategic move to ensure that the blockchain ecosystem remains robust and versatile.

SWIFT's Take

Tom Zschach, SWIFT's Chief Innovation Officer, believes that their infrastructure can serve as the central hub for connecting various blockchains. This could accelerate the development of tokenization, making it easier for banks and financial institutions to adopt this transformative technology.


The collaboration between Chainlink and SWIFT is more than just a successful test; it's a blueprint for the future of finance. By bridging traditional and blockchain networks, they've opened up a world of possibilities for asset movement and tokenization. This is just the beginning, and the impact could be monumental.


1. What is the significance of Chainlink's collaboration with SWIFT?

This partnership marks a pivotal moment in achieving interoperability between traditional finance and blockchain networks. It could revolutionize how assets are moved and tokenized.

2. How does tokenization work in this context?

Tokenization involves converting traditional financial assets into blockchain tokens, enabling seamless transfer and management through blockchain networks.

3. What is the Cross-Chain Interoperability Protocol (CCIP)?

CCIP is a new protocol launched by SWIFT that aims to facilitate communication between different blockchains. It's already supported by multiple blockchains and DeFi protocols.

4. What role does Ethereum play in this experiment?

Ethereum, a blockchain often analyzed in cryptocurrency charts, serves as the testnet—named Sepolia—for this groundbreaking experiment. It's a crucial component for testing the transfer of tokenized assets. For more details, check out the Ethereum market cap.

5. What's next for Chainlink and SWIFT?

The successful tests indicate that both entities will likely continue to collaborate to expand the scope of tokenization and blockchain interoperability.

This article has been refined and enhanced by ChatGPT.

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