U.Today - has announced it is working with Global Financial Messaging Giant Swift and more than a dozen major financial institutions on experiments to enable connectivity to and interoperability across public and private blockchains.
Swift, in collaboration with its community, will be globally testing how institutions can use their Swift connection to seamlessly interoperate with several global blockchain networks.
The Global Financial Messaging Giant says the experiments were borne out of its quest to explore a potential solution to the challenge of blockchain interoperability, which creates significant overhead and friction in managing and trading assets on them.
In a new set of experiments, Swift will collaborate with more than a dozen major financial institutions, including Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas (EPA:BNPP), BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group (LON:LLOY), SIX Digital Exchange (SDX) and The Depository Trust & Clearing Corporation (DTCC).
The experiments will test how firms can leverage their existing Swift infrastructure to efficiently instruct the transfer of tokenized value over a range of public and private blockchain networks.
Web3 services platform Chainlink will provide connectivity across public and private blockchains for these experiments.
Details on experiment
Three use cases will be demonstrated via the experiments; transferring tokenized assets between two wallets on the same open blockchain network (Ethereum Sepolia testnet) will be the very first case.The second involves moving tokenized assets from a public blockchain (Ethereum) to a permissioned blockchain. The transfer of tokenized assets from Ethereum to another public blockchain will be tested in a third use case.
Swift and Ethereum Sepolia networks will be connected using Chainlink as an enterprise abstraction layer, while Chainlink's Cross-Chain Interoperability Protocol (CCIP) will enable complete interoperability between the source and destination blockchains.