SWIFT Proves Its System Is Capable of Linking Multiple Blockchain Networks

SWIFT Proves Its System Is Capable of Linking Multiple Blockchain Networks

Time Stamp: August 31, 2023 11:59 AM
Source Node: 2245986

After years
of conducting experiments, SWIFT, the world’s leading provider of secure
financial messaging services, today (Thursday) announced that its
infrastructure can “seamlessly” facilitate the transfer of
tokenised assets across
multiple public and private blockchains. The member-owned cooperative
conducted the trials in
partnership with over a dozen global financial institutions, including the
Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon,
Citi, and Clearstream.

In 2021,
SWIFT unveiled plans to explore how it can support
interoperability in the developing tokenized asset market, Finance Magnates reported. Tokenized assets
describe digital assets that represent ownership of an underlying asset such as
a financial instrument. Security, utility and non-fungible
tokens are examples of such assets.

The
majority of institutional investors believe that tokenized assets hold the
power to revolutionise the asset management industry. However, because these
assets are managed on different blockchains, managing
interoperability is considered a major operational challenge to the adoption of such assets.

However,
SWIFT believes that its infrastructure could be the way out. In a report released today, the financial
messaging services provider noted that its solution has the potential to remove
the major obstacles hindering the expansion of tokenized asset markets,
allowing them to grow and scale worldwide as they continue
to evolve.

“Working
with more than a dozen major financial institutions and market infrastructures
and Chainlink, a leading Web3 services platform, SWIFT has successfully
demonstrated that it can provide a single point of access to multiple networks
using existing, secure infrastructure, thereby significantly reducing
operational challenges and investment required for institutions to support the
development of tokenised assets,” the organization explained.

Also
speaking, Tom Zschach, Chief Innovation Officer at SWIFT, emphasized that
institutions need to be able to connect “seamlessly” to the full spectrum of the financial
ecosystem for asset tokenization to reach its potential.

“Our
experiments have demonstrated clearly that existing secure and trusted SWIFT infrastructure can provide that central point of connectivity, removing a huge
hurdle in the development of tokenisation and unlocking its potential,” Zschach stated.

Cross-Border
CBDC

Meanwhile, SWIFT earlier in the year concluded a
“successful” test that showed that its solution could help to link over 100 central bank
digital currencies (CBDCs) being designed by
nations across the world. The cooperative noted that central and
commercial banks see “clear potential and value” in the solution.

“Our
solution has been successfully tested across almost 5,000 transactions between
two different blockchain networks and a traditional fiat currency, and we’re
delighted to have the support of our community in developing it further,”
Zschach explained.

CQG Trader platform retires; Twitter to collect biometric data; read today’s news nuggets.

After years
of conducting experiments, SWIFT, the world’s leading provider of secure
financial messaging services, today (Thursday) announced that its
infrastructure can “seamlessly” facilitate the transfer of
tokenised assets across
multiple public and private blockchains. The member-owned cooperative
conducted the trials in
partnership with over a dozen global financial institutions, including the
Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon,
Citi, and Clearstream.

In 2021,
SWIFT unveiled plans to explore how it can support
interoperability in the developing tokenized asset market, Finance Magnates reported. Tokenized assets
describe digital assets that represent ownership of an underlying asset such as
a financial instrument. Security, utility and non-fungible
tokens are examples of such assets.

The
majority of institutional investors believe that tokenized assets hold the
power to revolutionise the asset management industry. However, because these
assets are managed on different blockchains, managing
interoperability is considered a major operational challenge to the adoption of such assets.

However,
SWIFT believes that its infrastructure could be the way out. In a report released today, the financial
messaging services provider noted that its solution has the potential to remove
the major obstacles hindering the expansion of tokenized asset markets,
allowing them to grow and scale worldwide as they continue
to evolve.

“Working
with more than a dozen major financial institutions and market infrastructures
and Chainlink, a leading Web3 services platform, SWIFT has successfully
demonstrated that it can provide a single point of access to multiple networks
using existing, secure infrastructure, thereby significantly reducing
operational challenges and investment required for institutions to support the
development of tokenised assets,” the organization explained.

Also
speaking, Tom Zschach, Chief Innovation Officer at SWIFT, emphasized that
institutions need to be able to connect “seamlessly” to the full spectrum of the financial
ecosystem for asset tokenization to reach its potential.

“Our
experiments have demonstrated clearly that existing secure and trusted SWIFT infrastructure can provide that central point of connectivity, removing a huge
hurdle in the development of tokenisation and unlocking its potential,” Zschach stated.

Cross-Border
CBDC

Meanwhile, SWIFT earlier in the year concluded a
“successful” test that showed that its solution could help to link over 100 central bank
digital currencies (CBDCs) being designed by
nations across the world. The cooperative noted that central and
commercial banks see “clear potential and value” in the solution.

“Our
solution has been successfully tested across almost 5,000 transactions between
two different blockchain networks and a traditional fiat currency, and we’re
delighted to have the support of our community in developing it further,”
Zschach explained.

CQG Trader platform retires; Twitter to collect biometric data; read today’s news nuggets.

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