Fintech & Ecommerce

Swift Tests Use of Its Infrastructure for Transfers Over Blockchains

Swift is currently testing its infrastructure in terms of its suitability for the transfer of tokenized value over blockchain networks.

Swift Tests Use of Its Infrastructure for Transfers Over Blockchains

On Tuesday, June 6, the provider of financial messaging services published a press release on testing the possibilities of transferring tokenized value, in which he announced cooperation with the Web3 Chainlink service platform. The company also announced the verification of the relevant capabilities of more than ten financial institutions and financial market infrastructures.

The testing project includes asset management and trading in public and private blockchain networks. This activity is aimed at solving the problem of incompatibility of a large number of networks. Due to this circumstance of a negative nature, friction arises in the process of handling assets. The relevant information is contained in the company’s press release.

Tom Zschach, Chief Innovation Officer of Swift, says that within an ecosystem characterized by a high level of fragmentation, financial institutions do not have the technical ability to connect to each platform individually. He also stated that the financial community is currently cooperating with the provider in order to create such a model of interaction through which access to various sites around the world will be provided.

The press release contains information that the testing aims not only to provide financial institutions with the opportunity to cooperate with several blockchain networks but also to address issues related to the operation, regulation, and compliance of publicly available systems with regulatory requirements.

The curators of the project note that the main task is to ensure that the interaction of financial institutions and service platforms becomes a safe and trustworthy process, similar to the traditional practice of trading standard assets. The press release focuses on the fact that the use of blockchain technology will increase efficiency, reduce costs and expand opportunities.

Sergey Nazarov, the co-founder of Chainlink, said that as banks’ aspirations to have access to several blockchains grow, the common level of connectivity between different chains becomes the most important basis for the introduction of in-network financing.

Swift is testing the capabilities of the blockchain world as a way to provide services between financial institutions. Last year, the company established a partnership with the blockchain fintech firm Symbiont. This cooperation project was implemented in order to exchange information about corporate events between institutions in their network.

Swift’s partnership initiatives are based on the experience of working as the main interbank messaging service for financial organizations around the world. The company provides transactions worth $150 trillion annually.

As we have reported earlier, Swift to Develop CBDC Connector.

 

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.