Chainlink (LINK) creator Sergey Nazarov has anticipated potential progress of hundreds of billions of {dollars} within the blockchain trade, pushed by an progressive integration with the SWIFT funds system. During an interview on the Hong Kong Fintech Week 2024 convention, Nazarov defined how this collaboration might appeal to massive conventional monetary establishments towards adopting blockchain know-how.
SWIFT and Blockchain Integration: A Key Step for TradFi Adoption
According to Nazarov, Chainlink has developed an answer to attach the SWIFT system, broadly utilized by banks and monetary establishments, with blockchain know-how. This integration wouldn’t solely facilitate communication between the SWIFT system and blockchains, however would additionally enable for stay testing with massive monetary establishments. Chainlink demonstrated this know-how in a pre-production part, with the purpose that within the close to future it may be utilized in actual trials and, ultimately, in a full deployment for mass adoption.
“This was a big milestone for us, because the next step will be to do live testing and get these institutions to actually use the service. “That’s what we’re hoping for and promoting right now,” Nazarov highlighted.
The Expansion Potential of the Blockchain Industry Towards Hundreds of Billions
Nazarov highlighted that if even a small portion of the 11,000 banks and entities that operate with SWIFT begin to interact with blockchains securely and efficiently, the size of the blockchain market could expand significantly. This interaction would open the doors for participation in public or private blockchains, as well as real-world assets (RWA), tokenized funds, and stablecoins. In Nazarov’s words, “the market could go from a few trillion to tens and then hundreds of trillions of dollars.”
An Opportunity for the Fusion of Traditional Finance and Blockchain
This collaboration between Chainlink and SWIFT represents a vital advance for the trade, because it brings conventional finance nearer to the blockchain world and allows exponential progress of the sector. With this integration, Chainlink seeks to scale back the limitations for big banks and monetary establishments to enter the blockchain ecosystem, creating an setting the place decentralized and centralized finance can function collectively.
The future of the blockchain trade may very well be redefined because of this development, the place the scalability and adoption of blockchain would attain new ranges, projecting an period of unprecedented progress within the international market.
