Chainlink’s collaboration with Swift allows institutions to use Swift messages to interact seamlessly with blockchain technology.
By Bena Ilyas
Updated
2 mins read
Chainlink, a leading decentralized oracle network, has started a groundbreaking journey with Swift to revolutionize traditional finance (TradFi) systems through blockchain technology. The strategic move was announced at the recent Swift-organized Sibos conference in Beijing, where Sergey Nazarov, co-founder of Chainlink, took center stage.
.@SergeyNazarov keynote presentation at #Sibos:
— Chainlink (@chainlink) October 23, 2024
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Chainlink’s latest innovation comes from its partnership with Swift, the global messaging network used by banks. This collaboration allows institutions to use Swift messages to interact with blockchain technology seamlessly. The integration facilitates digital asset settlement with minimal infrastructure changes, bridging the gap between decentralized finance (DeFi) and TradFi.
At the Swift-organized Sibos conference in Beijing, China, Nazarov highlighted the benefits of this integration. He said they are in a pre-production stage, ready to offer solutions for existing institutional systems. This new system will enable pre-settlement and transaction confirmations through Swift’s established messaging standards, deeply rooted in the TradFi landscape.
After transaction confirmations, Chainlink’s infrastructure converts these messages into blockchain events. This allows financial institutions to lock assets and execute payments on-chain, ensuring greater security. Additionally, Sergey Nazarov introduced the Blockchain Privacy Manager (BPM), which enables private chain integration with Chainlink’s public platform.
“The Blockchain Privacy Manager […] can allow you to manage the privacy assumptions of everything related to your chain […] allows the data from your bank to be selectively placed into certain chains, but not others, and allows you to authoritatively manage what information can and can’t reach chains from your bank,” said Nazarov.
The BPM is crucial for financial institutions seeking end-to-end privacy in their blockchain applications. It uses Chainlink’s Cross-Chain Interoperability Protocol (CCIP) for Private Transactions, keeping sensitive data secure.
Combined with the new Swift integration, BPM functionality allows institutions to conduct private tokenized asset trading and cross-border payments with enhanced privacy. The integration also promises institutional-grade security with it’s robust privacy.
Chainlink’s platform also offers a cutting-edge system for verifying data without revealing sensitive information. DECO, a key feature, leverages zero-knowledge proofs and web tools to assist financial firms, businesses, and developers in securely validating crucial details. Privacy remains fully intact throughout this process.
DECO Sandbox will soon be available to the public, providing ready-to-use cases that highlight its strengths. Users can perform identity checks, verify funds, and screen sanctions while protecting confidential data. DECO will empower organizations to manage sensitive verifications without risking exposure of underlying information.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
