Chainlink (LINK) founder Sergey Nazarov said his partnership with payments giant SWIFT has reached an important milestone.
In a new speech at the Sibos 2024 conference in Beijing, Nazarov said Chainlink has developed a system that connects the world of traditional finance (TradFi) with blockchain capabilities.
“Over the years, we have worked with SWIFT to provide the ability to use SWIFT messages and the SWIFT standard to efficiently interact with blockchains while minimizing additional investment from institutions.
I am very excited to tell you that this diagram (below) presented in SWIFT’s second pilot last year is now a reality. “Now we are in the pre-production phase where we can deliver something that can actually be used in existing organ systems.”
Nazarov says that in the new system, the initial stages of transactions will occur over existing SWIFT rails before Chainlink technology brings the information onto the chain and converts it into blockchain transactions.
“The way the system works, the way the system actually works in production to properly execute transactions using SWIFT messages and the SWIFT standard, is that there is a pre-settlement phase. The pre-settlement stage is where everyone agrees on the nature of the transaction. This is done through traditional SWIFT messages about the status of the payment, the intent of the transaction, and what you and your institution hope to achieve with the transaction. This continues to happen over the SWIFT network.
The next stage of the deal is where things get interesting. Carrying out digital asset transactions essentially requires interacting with the blockchain. Whether you want tokenized funds, real assets, central bank digital currencies, or real chain assets, this is where Chainlink comes into play. It is intended to solve the very important problem of converting SWIFT messages into blockchain events.”
Chainlink is trading at $11.24 at the time of this writing, down nearly 7% in the last 24 hours.
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