- Tokenization will revolutionize asset management through potential to cut costs
- Chainlink and Swift provide a single access point to numerous networks
- Swift connected to the Ethereum Sepolia network via Chainlink
Global payment processing system Swift released results from some experiments that prove its infrastructure can enable multichain transfer of tokenized value. The findings can help eliminate a great deal of friction that’s decelerating the growth of tokenized asset markets and allow them to scale globally, Swift wrote in a press release on their website.
Tokenization is set to revolutionize asset management
According to 97% of institutional investors, tokenization will revolutionize asset management through its potential to cut costs, increase efficiency, and give investors more opportunities by making fractional ownership possible.
One challenge facing institutions and investors has traditionally involved the management of tokenized assets on different blockchains and the lack of interoperability between those. Connections need to be built to each platform, incurring costs and creating considerable operational challenges.
Swift and Chainlink created a single point of access
In collaboration with Chainlink, Swift proved it could provide a single access point to numerous networks using secure existing infrastructure, thereby reducing investments and operational challenges.
The experiments build on efforts over the past several years to demonstrate how Swift infrastructure can help the financial world connect Central Bank Digital Currencies (CBDCs) and other digital assets with innovative and existing payments systems.
Tom Zschach, Chief Innovation Officer at Swift, said:
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.
Collaboration with BNP Paribas, BNY Mellon, Citi
The global payments processor partnered with several leading financial institutions, such as BNP Paribas, BNY Mellon, Citi, Euroclear, SDX, Clearstream, Lloyds Banking Group, and The Depository Trust and Clearing Corporation.
Swift connected to the Ethereum Sepolia network via Chainlink as an enterprise abstraction layer. Chainlink also enabled interoperability between source and destination blockchains through its dedicated protocol.
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