How Chainlink is Helping SWIFT to Bring Tokenized Assets to the Mainstream
Tags: swift, chainlinking, tokenizedassets, cryptocurrency
Published: 2023-09-12 08:04:52

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a global messaging network that connects over 11,000 financial institutions. It is used to facilitate the secure and efficient transfer of money and other financial information.

In recent years, SWIFT has been exploring the use of blockchain technology to improve its services. In particular, it is interested in using blockchain to tokenize assets, such as securities, commodities, and currencies.

Tokenization is the process of converting an asset into a digital representation that can be traded on a blockchain network. This has a number of potential benefits, including:

- Increased efficiency: [Tokenized assets](https://www.codezeros.com/swift-embraces-crypto-chainlink-integration-and-how-it-helps-with-tokenized-assets-rwa) can be transferred more quickly and cheaply than traditional assets. This is because blockchain transactions are processed much faster than traditional financial transactions.

- Increased transparency: The ownership and movement of tokenized assets can be tracked on the blockchain, providing greater transparency. This can help to reduce fraud and other financial crimes.

- Increased security: Blockchain is a secure and immutable ledger, which makes it well-suited for storing and transferring valuable assets. This is because blockchain data is distributed across a network of computers, making it difficult to hack or tamper with.
SWIFT believes that tokenization could revolutionize the way financial institutions operate. It could make it easier to trade assets, improve liquidity, and reduce costs.

Chainlink is a decentralized oracle network that provides secure and reliable data feeds to smart contracts. This makes it ideal for use in tokenized asset applications.

Chainlink's oracles can be used to provide real-world data to smart contracts, such as the price of an asset, the status of a trade, or the identity of a counterparty. This data can be used to automate the execution of smart contracts, ensuring that they are executed correctly and efficiently.

For example, Chainlink's oracles could be used to automate the trading of tokenized securities. When a trader wants to buy a tokenized security, the oracle would provide the smart contract with the current price of the security. The smart contract would then execute the trade, automatically transferring the funds from the buyer to the seller.

SWIFT is working with Chainlink to develop a solution for tokenized assets. The solution will use Chainlink's oracles to provide real-world data to smart contracts, which will be used to automate the trading and settlement of tokenized assets.

This collaboration is a major step forward in the development of tokenized assets. It shows that SWIFT is committed to using blockchain technology to improve its services and that Chainlink is the leading oracle network for blockchain applications.

In addition to the benefits mentioned above, tokenized assets also have the potential to:

**Increase access to financial markets:** Tokenized assets can be traded on a global, decentralized network, making them more accessible to investors around the world.

**Reduce the cost of trading:** The use of blockchain technology can significantly reduce the cost of trading assets.

**Improve liquidity:** Tokenized assets can be more liquid than traditional assets, as they can be traded 24/7.

**Facilitate cross-border payments:** Tokenized assets can be used to make cross-border payments more efficiently and cheaply.

The collaboration between SWIFT and Chainlink is a major step forward in the development of tokenized assets. It has the potential to revolutionize the way financial institutions operate and make it easier for businesses and individuals to trade and invest in tokenized assets.

## Conclusion

Tokenized assets have the potential to bring significant benefits to the financial industry. They can make it easier to trade and invest in assets, improve liquidity, and reduce costs. The collaboration between SWIFT and Chainlink is a major step forward in the development of tokenized assets and has the potential to make these benefits a reality.

In addition to the specific contributions of Chainlink mentioned in the previous version of the blog post, Chainlink is also working on a number of other projects that could help to bring tokenized assets to the mainstream. These projects include:

The development of a standard for tokenized assets: This would make it easier for different financial institutions to interact with each other and trade tokenized assets.

The creation of a liquidity pool for tokenized assets: This would help to ensure that tokenized assets are always available to trade.

The development of a regulatory framework for tokenized assets: This would help to protect investors and ensure that tokenized assets are used in a responsible manner.

The collaboration between SWIFT and Chainlink is a major step forward in the [development of tokenized assets](https://www.codezeros.com/tokenomics-development). It is a sign that the financial industry is taking tokenization seriously and that it is committed to using blockchain technology to improve its services. The future of tokenized