Swift hails success of blockchain interoperability pilot
The banking co-operative in June announced that it was working with more than a dozen financial institutions and market infrastructures to test the use of its messaging network as a means to instruct the transfer of tokenised value over a range of public and private blockchain networks.
Participants in the project include 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.
Web3 services platform Chainlink was used as an enterprise abstraction layer to securely connect the Swift network to the Ethereum Sepolia network, while Chainlink’s Cross-Chain Interoperability Protocol (CCIP) enabled interoperability between the source and destination blockchains.
Transfers of simulated tokenised assets took place - between two wallets on the same public distributed ledger technology network; between two wallets on different public blockchains; and between a public and private blockchain network.
Tom Zschach, chief innovation officer at Swift says the findings have the potential to remove significant friction slowing the growth of tokenised asset markets and enable them to scale globally as they mature.
"For tokenisation to reach its potential, institutions will need to be able to seamlessly connect with the whole financial ecosystem," he says.
