Chainlink’s increasing involvement in SWIFT’s blockchain integration has sparked comparisons to XRP’s longstanding aspirations in the same realm. Reports have revealed that Chainlink technology is already being utilized by SWIFT to connect over 11,000 banks to both public and private blockchains, positioning Chainlink as a frontrunner in real-world adoption.
Chainlink’s connections within the global finance sector have been expanding rapidly, with collaborations with major financial entities such as the DTCC, Mastercard, central banks, and top asset managers. The partnership with SWIFT plays a pivotal role in this progress, facilitating data and transaction flows across multiple blockchains. While there is speculation about which blockchain will facilitate these transactions, Chainlink advocate Zack Rynes has suggested that any of the hundreds of available blockchains could fulfill this role, potentially opening the door for XRP and the XRP Ledger (XRPL) to participate.
However, Rynes has emphasized that in reality, Swift and Chainlink have been working together to link up 11,500 Swift-affiliated banks to both public and private blockchain networks. This has led to some pushback from XRP supporters, who view external criticism as a sign of an impending breakthrough for the token. Rynes, on the other hand, believes that Chainlink’s market capitalization of $14 billion is undervalued compared to XRP’s $188 billion, especially given Chainlink’s institutional accomplishments.
The debate surrounding Chainlink and XRP also drew in Dom Kwok, co-founder of EasyA, who highlighted the differences in perception between the two technologies. While Kwok acknowledged witnessing Ripple’s technology being utilized in real-world scenarios, he expressed reservations about Chainlink’s deployment and the lack of active developers building with it. He emphasized the importance of hands-on experience with developers to gauge the scalability and effectiveness of a technology.
Chainlink’s collaboration with SWIFT dates back to 2016 but has gained momentum in recent years. Both entities showcased a proof-of-concept at the latest Chainlink SmartCon event, leveraging the Cross-Chain Interoperability Protocol (CCIP) to interconnect SWIFT’s legacy messages with multiple blockchains. Successful tests conducted in May 2023 with BNY Mellon and BNP Paribas involved the seamless transfer of tokenized assets between chains.
In conclusion, Chainlink’s integration with SWIFT and its growing prominence in the blockchain sector underscore its potential for widespread adoption and institutional use. As the partnership continues to evolve, the comparison to XRP’s ambitions serves as a reminder of the dynamic landscape of blockchain technology and the competitive forces at play.