Chainlink Integrates with Swift for Tokenized Payments

Chainlink has collaborated with Swift to introduce an integration that enables financial institutions to connect to Swift's blockchain ledger without handing over their transaction-signing keys. This framework uses Chainlink's Runtime Environment (CRE) to coordinate workflows between bank systems and Swift's shared infrastructure.

The Chainlink Swift integration works on the principle of self-signature, where banks retain control of transactions and CRE handles the processes required for reading and writing into Swift's ledger. This approach maintains the established process of transaction authorization and allows institutions to access tokenized payments through the Chainlink Swift integration without transferring their transaction authority.

The integration is currently being piloted by 17 banks across six continents, including ANZ, BNP Paribas, Citi, HSBC, Standard Chartered, UBS, UOB, and Wells Fargo. These institutions will be testing tokenized deposit services on the shared platform, with a focus on making payments at night and weekends followed by settlements via existing processes.