Swift and Chainlink successfully transferred tokenized value across multiple blockchains in recent experiments. The findings have the potential to remove significant friction slowing the growth of tokenized asset markets and enabling them to scale globally as they mature.
The experiments were conducted in June and July 2023 and involved dozens of financial institutions, including BNP Paribas, BNY Mellon, The Depository Trust & Clearing Corporation, and Lloyds Banking Group.
Swift is an interbank messaging system that connects banks and other financial institutions around the world. Chainlink is a Web3 services platform that provides secure and reliable oracles to connect blockchains to real-world data. The experiments used Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to connect Swift to multiple blockchains. CCIP is a decentralized protocol that allows for the secure and reliable transfer of data between different blockchains.
The successful transfer of tokenized value across multiple blockchains is a significant milestone in the development of tokenized asset markets. It could help to remove the friction that currently exists in these markets and make it easier for institutions to trade tokenized assets.
The experiments also highlighted the need for regulatory clarity on tokenization. As tokenized asset markets continue to grow, it will be important for regulators to provide clear guidance on how these markets should be regulated.