Blockchain oracle service provider Chainlink (LINK) is working on a pilot project for Brazil’s proposed central bank digital currency (CBDC) called DREX with Microsoft and other firms in the country. In a press release, Chainlink says it is collaborating with Microsoft Brazil, digital bank Banco Inter and blockchain finance firm 7COMm to build a trade […]
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Trillions of dollars will flow into Web3 once the details of the Internet of Contracts are worked out.
The value of tokenized real-world assets (RWA) will exceed that of cryptocurrencies on Web3 in the next few years, Chainlink co-founder Sergey Nazarov said in his keynote presentation at TOKEN2049 in Singapore on Sept. 18. That surge of value flowing from traditional finance (TradFi) will drastically alter the nature of the blockchain industry.
“This is the role I think we should all be preparing for. […] TradFi will be the largest customer of DeFi [decentralized finance],” Nazarov said. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) may have a crucial role to play in an emerging Internet of Contracts that will link central bank digital currency, asset chains, consortium chains and public blockchains, he added.
The Chainlink oracle network “already powers the majority of DeFi,” having enabled $15.49 trillion in transaction value since 2022, Nazarov said. For TradFi to use blockchain technology, it needs access to a variety of types of data, including live data, “to make TradFi smart contracts function properly.”
The Depository Trust & Clearing Corporation (DTCC) has announced the successful completion of its Smart NAV pilot, leveraging Chainlink’s technology to enhance its Mutual Fund Profile Service I (MFPS I). The initiative aims to bring trusted data to blockchain ecosystems, facilitating more efficient data dissemination and consumption. Chainlink Boosts DTCC’s Smart NAV Pilot DTCC’s Smart […]
Decentralized oracle network Chainlink (LINK) is skyrocketing after completing a fund tokenization pilot with the Depository Trust and Clearing Corporation (DTCC). According to a new press release, the DTCC has developed a new pilot program, known as Smart NAV, which utilizes both the firm’s digital asset capabilities as well as Chainlink’s data feeding and interoperability […]
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Chainlink Labs’ Vince Turcotte told Cointelegraph that they expect digitally-native institutions to be the first to adopt the integration.
Blockchain oracle project Chainlink has partnered with Financial Information eXchange (FIX) connectivity solutions provider Rapid Addition to develop a FIX-native adapter for institutional digital asset trading.
In an announcement, Chainlink said the adapter would be powered by its Cross-Chain Interoperability Protocol (CCIP), an interoperability protocol with use cases across token transfers, gaming and decentralized finance (DeFi).
According to Chainlink, the collaboration will let banks and financial institutions send messages and engage with a “broad spectrum of tokenized assets.”
The project will connect SWIFT's network to nearly every blockchain to allow traditional finance players access to digital and traditional assets on the one network.
Interbank messaging system SWIFT has partnered with price oracle provider Chainlink (LINK) to work on a proof-of-concept (POC) project which would allow traditional finance firms the ability to transact across blockchain networks.
Chainlink co-founder Sergey Nazarov announced the project at its SmartCon 2022 Conference in New York on Sept. 28 alongside SWIFT strategy director Jonathan Ehrenfeld Solé.
SWIFT is using the Cross-Chain Interoperability Protocol (CCIP) in an initial proof of concept.
— Chainlink (@chainlink) September 28, 2022
CCIP will enable SWIFT messages to instruct on-chain token transfers, helping the SWIFT network become interoperable across all blockchain environments.https://t.co/8GOBNhzwCk pic.twitter.com/Pvm0Cex45e
At the conference, Solé said there is “undeniable interest from institutional investors into digital assets” adding these traditional finance players want access to digital and traditional assets on one platform.
The POC utilizes Chainlink’s Cross-Chain Interoperability Protocol (CCIP) allowing SWIFT messages to instruct token transfers across nearly every blockchain network which, according to Nazarov, will accelerate adoption of distributed ledger technology (DLT) blockchains across capital markets and traditional finance.
The SWIFT interbank messaging system is the most widely used platform for traditional cross-border fiat transactions, connecting over 11,000 banks around the world. In August the system recorded an average of 44.8 million messages per day.
However, transactions on SWIFT's network can take several days to complete and the company has also been exploring blockchain and DLT technology and central bank digital currencies (CBDCs) to facilitate faster payments.
Chainlink added this collaboration with SWIFT allows financial institutions to gain blockchain capability without replacing, developing, and integrating new connectivity into legacy systems, something it said would require substantial modifications with an “exceptionally high” cost.
Related: Why interoperability is the key to blockchain technology’s mass adoption
Mastercard CEO Michael Miebach said at a panel session in May on CBDCs that he doesn’t expect SWIFT to exist in five years, likely due to the rising competition from CBDCs for cross-border payments and settlements.
Mastercard later clawed back the statement, noting that Miebach simply meant that SWIFT's operations will continue to evolve from its current form.
