Oracle and Chainlink expand infrastructure to link bank deposits with SWIFT ledger

Oracle and Chainlink are expanding digital asset infrastructure to connect traditional banking systems with SWIFT’s blockchain-based shared ledger. This development aims to facilitate the use of tokenized deposits for 24/7 cross-border payments.

Oracle has enhanced its ‘Digital Assets Data Nexus’ to allow banks to link tokenized deposits, stablecoins, and central bank digital currencies (CBDCs) with the ‘Swift Ledger’. The system enables banks to maintain control over their own tokenized deposits and wallets while using Oracle’s platform to synchronize transaction statuses with the SWIFT ledger. Final settlement remains integrated with existing real-time gross settlement (RTGS) systems.

Simultaneously, Chainlink is building a dedicated integration solution to connect financial institutions' legacy systems and key-signing infrastructure directly to the SWIFT network. Using the ‘Chainlink Runtime Environment’, banks can operate smart contracts across both their internal tokenized deposit ledgers and the SWIFT ledger without altering their existing security governance or internal approval processes.

SWIFT’s shared ledger acts as an orchestration layer to coordinate transactions between different banks' tokenized deposit environments. Currently, 17 financial institutions are participating in pilot programs for tokenized cross-border payments.