Chainlink and Swift Enable Banks to Access Blockchains Without Infrastructure Upgrades
Chainlink has unveiled a brand new technical framework permitting monetary establishments to handle digital asset workflows utilizing Swift’s international messaging system, eliminating the necessity for infrastructure upgrades or overhauls to legacy processes.
Key Takeaways:
- Chainlink and Swift have enabled banks to set off blockchain transactions utilizing ISO 20022 messages with out altering present techniques.
- UBS efficiently piloted the mixing, exhibiting tokenized fund operations may be managed completely by Swift messaging.
- The answer goals to deliver onchain automation to the $100+ trillion fund business whereas slicing prices and sustaining regulatory compatibility.
The pilot, carried out with UBS Tokenize, demonstrated how banks can use ISO 20022 messages, the worldwide customary for monetary communications, to set off blockchain-based transactions, according to a recent press release.
When UBS despatched these standardized messages by Swift, they had been acquired by Chainlink’s Runtime Environment (CRE), which then activated subscription and redemption processes for a tokenized fund by Chainlink’s Digital Transfer Agent.
Chainlink, Swift Allow Banks to Access Blockchains Without Changing Infrastructure
The course of permits establishments to join with blockchain techniques from inside their present structure, sidestepping the necessity for brand new id, key administration, or settlement instruments.
The aim is to scale back friction, enhance automation, and develop blockchain use with out forcing conventional finance to abandon acquainted infrastructure.
This improvement builds on earlier work accomplished below the Monetary Authority of Singapore’s Project Guardian, the place Chainlink, Swift, and UBS first collaborated to check tokenized asset settlement utilizing offchain money transfers.
The new part provides interoperability, enabling onchain occasions to be triggered instantly from conventional messaging rails—a key problem in institutional adoption of tokenized finance.
Chainlink mentioned the mannequin is designed to be “plug-and-play,” opening entry to blockchain infrastructure for international establishments with out the fee and complexity of full system replacements.
The Chainlink integration with Swift messaging is seen as a bridge that allows the $100+ trillion fund business to discover full onchain workflows, boosting transparency, lowering reconciliation steps, and enabling programmable compliance.
In parallel, Chainlink can also be working with 24 international banks and monetary infrastructure companies like DTCC and Euroclear on one other pilot.
That mission makes use of Chainlink’s instruments and AI to standardize company motion knowledge, aiming to scale back billions in annual processing prices throughout the business.
“This is a landmark innovation,” mentioned Chainlink co-founder Sergey Nazarov.
“We’re exhibiting how sensible contracts and new technical requirements can enable switch brokers and different entities to handle tokenized asset workflows instantly onchain.”
UBS’s involvement marks a rising curiosity amongst main banks in integrating tokenization into real-world operations, with out ready for brand new techniques to be constructed.
Swift Taps Ethereum’s Linea for On-Chain Settlement Pilot with Global Banks
Last week, Swift revealed that it has launched a blockchain pilot utilizing Ethereum Layer 2 community Linea to check on-chain messaging and settlement, marking a deeper push into digital infrastructure.
The trial consists of main banks like BNP Paribas and BNY Mellon and explores utilizing a stablecoin-like token for direct interbank settlement.
Linea, chosen for its zk-rollup tech, presents low-cost, high-speed transactions whereas sustaining Ethereum-level safety and privateness, important for banks dealing with regulated monetary knowledge.
The pilot might streamline cross-border funds by lowering intermediaries and legacy friction.
This mission builds on Swift’s earlier blockchain experiments, together with work with Chainlink, and reinforces Ethereum’s function in institutional finance.
The initiative displays rising stablecoin curiosity amongst banks and positions Linea as a bridge between conventional finance and decentralized techniques.
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