SWIFT’s RWA Initiative Might Trigger Chainlink (LINK) Price Surge

As a key player in the RWA sector, Chainlink prides itself on the capacity of its Cross-chain Interoperability Protocol (CCIP) to connect various on-chain environments.

Key Notes

SWIFT is making a crucial exploration of the tokenized RWA market.Chainlink is on track to play a major role in facilitating the SWIFT pivot.LINK price might benefit more from any potential partnership.

A recent SWIFT initiative holds the potential to drive Chainlink LINK $10.56 24h volatility: 2.0% Market cap: $6.43 B Vol. 24h: $285.07 M  price to $12 or even as high as $15. Notably, payment infrastructure provider The Society for Worldwide Interbank Financial Telecommunication unveiled a new initiative on Wednesday that is focused on streamlining global transactions. This new development will simplify tokenized asset transfers and allow users to utilize their SWIFT connection for transactions in real time.

These are for transactions involving traditional and emerging asset classes, like crypto.

SWIFT to Leverage Chainlink’s CCIP

Experts and market observers project that the Real-World Asset (RWA) niche will reach a $30 trillion valuation in ten years. When this happens, SWIFT plans to grab a significant percentage of the market. Therefore, its new initiative is largely focused on RWA’s global trend.

As a key player in the RWA sector, Chainlink prides itself on the capacity of its Cross-chain Interoperability Protocol (CCIP) to connect various on-chain environments. SWIFT is working on testing multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions on its global platform.

Chainlink is at the forefront of this plan because it already offers those services via its CCIP. This suggests that implementing SWIFT’s initiative will increase demand for various Chainlink services. Moreover, LINK, which must be purchased in the open market, is the token utilized to pay for all Chainlink services.

Hence, LINK may be preparing to break out of its falling trend, which began in February, and head for a major price surge soon. At the time of writing, LINK traded at $10.56 after gaining 1.07% in the last 24 hours. To reach the projected level of $12, the token must see a 13.7% gain from its current level.

This is not impossible and might place LINK in more focus in the coming days.

Tackling the Challenges of RWA Tokenization

Before now, right after Chainlink network inked a strategic partnership with Suho.io, a blockchain financial tech company, some analysts pointed out that the protocol’s bullish recovery could be fueled by rising RWA tokenization in global markets. Chainlink’s alliance with Suho.io aims to develop tokenized assets and Central Bank Digital Currency (CBDC) use cases.

Both entities plan to enable the mainstream adoption of digital assets in emerging Asian markets like Japan and Thailand.

Meanwhile, SWIFT has spotted an interoperability challenge in the global tokenized asset industry. The world’s leading secure financial messaging service provider believes this is caused by a greater lack of globally accepted digital forms of money.

“Digital currencies and tokens have huge potential to shape the way we will all pay and invest in the future. But that potential can only be unleashed if the different approaches that are being explored have the ability to connect and work together,” SWIFT Chief Innovation Officer Tom Zschach said.

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