SWIFT and Chainlink will launch a blockchain platform for banks

The SWIFT financial messaging network has announced the launch of a new blockchain-based registry. This is the result of years of partnership with Chainlink and two years of research on digital assets.

The new system enables the processing of corporate events in the financial sector. The project involves 24 major organizations, including DTCC, Euroclear, UBS, and Wellington Management. The technology utilizes artificial intelligence to extract data from unstructured documents, and network participants verify the accuracy of the information.

Verified data is converted into standard ISO 20022 messages and transmitted over the SWIFT network. Concurrently, the Chainlink inter-network protocol distributes the same data to public and private blockchains. Testing has shown nearly 100% accuracy of information and support for multiple languages, including Spanish and Chinese.

The solution creates a single reliable source of data on corporate events. It is available simultaneously for smart contracts and traditional systems.

A key feature of the partnership is the ability for banks to use existing infrastructure and SWIFT messaging standards to interact with blockchains. This reduces the costs and complexity of transitioning to working with tokenized assets.

The collaboration between SWIFT and Chainlink began in 2016. The first step was a demonstration of a smart contract for bonds that received data through oracles and sent payment messages via SWIFT.

In the following years, the partners conducted several successful experiments. Among them are cross-network transfers of tokenized assets and settlements on shares of tokenized funds using fiat currency.

Let us remind you that in September, SWIFT integrated blockchain-based distributed ledger technology.