In a significant development for the financial and blockchain sectors, Chainlink has announced a new integration with SWIFT that enables banks to execute tokenized fund transactions directly on-chain using standardized ISO 20022 messaging. This innovative approach is being tested through a pilot program with UBS Tokenize during Sibos week.
The integration leverages Chainlink’s Runtime Environment (CRE) to transform traditional SWIFT messages into actionable blockchain transactions. This system allows financial institutions to maintain their existing SWIFT protocols while introducing blockchain capabilities. Banks can continue using their current infrastructure, while CRE seamlessly translates ISO 20022 instructions into on-chain actions.
The collaboration aims to boost the adoption of tokenization within the sprawling $100 trillion global fund industry. Historically, the slow uptake of tokenization has stemmed from the need for banks to retain their existing back-office systems. By enabling blockchain operations to coexist with SWIFT’s established messaging framework, the integration promises to facilitate fund movements on-chain without necessitating costly system overhauls.
This initiative builds upon previous projects, such as Project Guardian, which sought to explore the convergence of tokenized assets and traditional financial ecosystems. The media attention surrounding this development highlights Chainlink’s role as a pivotal link between the banking sector and cryptocurrency markets.
The interface with SWIFT has been described as a plug-and-play model, designed to reduce operational friction and automate compliance and reconciliation tasks for banks.
On the market side, Chainlink’s native token, LINK, was trading around $22-$23, reflecting a 6% increase over a 24-hour period, part of a broader recovery in the cryptocurrency market. With a market capitalization nearing $15.2 billion, LINK showed trading activity within a daily range of $21.04 to $22.47.
Analysts have identified a short-term support zone for LINK at $21-$20. A drop below this threshold could lead prices to test August and September levels around $18-$19. Conversely, should LINK reach intraday levels near $22.5, it could target the $24-$25 range, previously established as a resistance point during June. If LINK can maintain a strong close above this resistance, it may set the stage for a retest of the $26-$28 range previously reached during notable market rallies.
Market analyst Ali Martinez observed that if LINK sustains the $20 support level, there is potential for momentum that could drive the token toward a price target of $47. Technical indicators suggest that LINK has been operating within an upward channel since mid-2023, with established boundaries acting as indicators of an increasing trend.
Recent price action has confirmed strong technical support at the 0.786 Fibonacci retracement level near $20.11. Should LINK breach this support, it could decline towards the 0.618 retracement level at approximately $15.
Currently, LINK has encountered challenges breaking through the $25-$29 resistance zone. However, if it surpasses the critical level of $29.11, a rapid ascent to the channel’s upper limit may occur. The token has historically demonstrated a tendency to consolidate before making significant market movements, a pattern that analysts believe could hold true in the current climate.
As LINK hovers at a pivotal point, maintaining its position above the $20 support level will be crucial for bullish trends, with the $30 zone serving as the next significant hurdle. Conversely, failing to hold this support could expose LINK to potential declines back into the mid-teens before any fresh rally attempt emerges.
