Swift Network Completes Successful Transfer Of Tokenized Assets In Pilot Study
Milestone Date: August 31, 2023
Swift, an interbank messaging system, has shared the outcomes of its tests demonstrating that its infrastructure can efficiently support the transfer of tokenized value across various public and private blockchains.
This proof of concept was performed in collaboration with Chainlink and more than 20 financial institutions including Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX) and The Depository Trust & Clearing Corporation. The results demonstrated that Swift’s existing inter-organizational financial infrastructure can support the secure transfer of tokenized assets where multiple public and private blockchains are involved.
During the proof of concept, Chainlink was used as an enterprise abstraction layer to securely connect the Swift network to Ethereum Sepolia – one of two Ethereum test networks (Goerli is the other testnet). Meanwhile, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) enabled Swift to connect between the different source and destination blockchains used in the pilot. The experiment covered a variety of scenarios in which simulated tokenized assets were transferred using the Swift network:
- Between two wallets on the same public blockchain
- Between two wallets on different public blockchains (Ethereum and Avalanche)
- Between public blockchains and a Quorum-based private blockchain
"For tokenization to reach its potential, institutions will need to be able to seamlessly connect with the whole financial ecosystem. Our experiments have demonstrated clearly that existing secure and trusted Swift infrastructure can provide that central point of connectivity, removing a huge hurdle in the development of tokenization and unlocking its potential," Tom Zschach, Chief Innovation Officer at Swift said in a press release.
By Elizabeth Morrison
Published:August 31, 2023