Decentralized Oracle provider <a href="https://www.cryptoknowmics.com/news/chainlink-link-unlocks-341-million-in-latest-token-release/" target="_blank" rel="noopener">Chainlink</a> has announced a new blockchain payment solution in collaboration with Swift, a global financial messaging network. This integration will enable financial institutions to interact with blockchain technology using Swift messages, creating a seamless bridge between decentralized finance (DeFi) and traditional finance (TradFi).
<h3>Swift’s Integration with Blockchain Technology</h3>
[embed]https://twitter.com/chainlink/status/1848964021417881605[/embed]

The collaboration allows institutions to settle digital assets with minimal changes to their existing infrastructure. At the Swift-organized Sibos conference in Beijing, China, Chainlink co-founder Sergey Nazarov highlighted the practical advantages of this new solution. He explained that it facilitates pre-settlement and transaction confirmation through Swift’s well-established messaging system, already widely used in TradFi.

After confirmation, Chainlink’s infrastructure converts these messages into blockchain events, enabling institutions to lock assets and execute payments on-chain.
<h3>Privacy Management with Chainlink’s Blockchain Privacy Manager (BPM)</h3>
Another key feature unveiled was Chainlink’s Blockchain Privacy Manager (BPM), designed to offer privacy-preserving features for institutions using blockchain applications. Nazarov emphasized that privacy has been a major hurdle in the adoption of digital assets by capital markets. BPM allows institutions to control which data is shared on public and private chains, ensuring privacy for sensitive transactions such as tokenized asset trading and cross-border payments.
<h2>Regulatory and Centralization Concerns</h2>
While Chainlink’s new solution provides institutional-grade security and privacy, it raises concerns about regulatory compliance, particularly regarding Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. The centralization of privacy controls could also challenge the decentralized nature of blockchain technology, as institutions may conduct private transactions with less public oversight.

<em><strong>Disclaimer: </strong></em>The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Chainlink Partners with Swift to Introduce Blockchain Payment Solution for Institutions

Chainlink partners with Swift to enable blockchain-based payments for financial institutions, bridging DeFi and TradFi with enhanced privacy.

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more
than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

Chainlink Partners with Swift to Introduce Blockchain Payment Solution for Institutions

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