Experiments Show Tokenized Value Can Be Transferred Across Multiple Blockchains

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Experiments Show Tokenized Value Can Be Transferred Across Multiple Blockchains

Swift and Web3 services platform Chainlink have recently conducted experiments that demonstrate tokenized value can be transferred across multiple private and public blockchains. According to a Thursday press release, the findings have potential to remove significant friction slowing the growth of tokenized asset markets and enable them to scale globally as they mature. In June, Swift and Chainlink announced they would be collaborating with dozens of financial institutions to test how they can connect with multiple blockchain networks. BNP Paribas, BNY Mellon, The Depository Trust & Clearing Corporation and Lloyds Banking Group were among the institutions that participated in the experiments.

Financial institutions around the world are increasingly exploring asset tokenization as a way to improve financial markets. A recent report from the Hong Kong Monetary Authority said tokenization could help improve efficiency and transparency in bond markets. Tom Zschach, chief innovation officer at Swift, said in a press statement that 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.

Swift used Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to connect with different blockchains. Chainlink’s CCIP, which is designed to help build cross-chain applications and services, went live in July.