Swift Can Play A Central Role in Blockchain Interoperability: Report
The Society for Worldwide Interbank Financial Telecommunication, popularly referred to as “SWIFT,” has recently unveiled significant data findings on effective blockchain interoperability. The report discusses the potential of tokenization, emphasizing effective blockchain communication and seamless transmission.
Swift Reveals New Findings on Blockchain Interoperability
Swift seems to have developed a pioneering method to promote blockchain interoperability, which can facilitate the cross-functioning of multiple blockchains through a single entry point.
The report, which the firm has published online, weighs in on the potential of tokenization, discussing a well-rounded path or infrastructure that could soon facilitate “the transfer of tokenized value across multiple public and private blockchains.
The report later shared key insights that Swift concluded through various levels of experimentation while collaborating with key market giants, including Chainlink, Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust & Clearing Corporation.
Through collaboration and experimentation, Swift identified “a single point of access to multiple networks using existing, secure infrastructure, thereby significantly reducing the operational challenges and investment required for institutions to support the development of tokenized assets.”
In simpler terms, while leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP), Swift could determine a single access point for multiple blockchains to converge without impacting the distinctive nature of each tokenized asset a blockchain often carries. If deployed with supervision, Swift’s attempt could soon help simplify the interconnection of blockchains, reduce costs, and help the tokenized market domain scale globally.
While addressing the need for blockchain interoperability on a broader scale, Swift shared how these experiments are part of its future expansion plans with the sole purpose of elevating the world’s financial communities to a whole new level.
“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’s infrastructure could support the financial community in interconnecting Central Bank Digital Currencies (CBDCs) and other digital assets with new and existing payment systemsThe report later adds
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Swift and its Stance on Blockchain and CBDCs
Swift has long been known for its experimental spirit. The firm has a distinctive track record of performing multiple experiments and collaborations to introduce new economic findings that can help revolutionize the financial sector around the world.
The firm had recently completed an experiment on central bank digital currencies, or CBDCs. In collaboration with Capgemini, Swift achieved CBDC-to-CBDC transactions through different DLT networks based on Quorum and Corda technologies.
In the same experiment, the firm successfully integrated fiat-to-CBDC in a real-time gross settlement system, setting another milestone for the team. The said initiative was one of many endeavors Swift is consistently mapping to simplify “interconnected cross-border payments.
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