Chainlink Connects Banks to Swift Blockchain Ledger with New Connection Framework

Chainlink has announced a new connection framework that allows financial institutions to access Swift's blockchain ledger while maintaining control over their transaction-signing keys. This collaboration enables banks to connect their existing systems and infrastructure to Swift's shared ledger through Chainlink's platform.

The arrangement centers on a self-signing model, where institutions keep the keys used for authorizing transactions. The Chainlink Runtime Environment (CRE) coordinates workflows between institutional systems and the shared ledger, allowing banks to preserve existing approval procedures and security controls while adopting tokenized payment services.

According to Swift, its blockchain ledger is designed to coordinate cross-border payments using tokenized commercial-bank deposits. These tokens represent deposits that remain on each issuing bank's balance sheet and ledger, with Swift's shared system recording and validating payment commitments between institutions.

The initial participating banks in the pilot program include 17 institutions from six continents, including ANZ, BNP Paribas, HSBC, and UBS. The connection to Swift's ledger is intended to support tokenized payments and round-the-clock money movement, with the goal of expanding its use after a controlled rollout.