Chainlink, a decentralized Oracle provider, is set to launch a new blockchain payment solution for financial institutions, partnering with Swift, a global banking messaging network. At the Sibos conference in Beijing, co-founder Sergey Nazarov showcased the integration, which allows institutions to utilize Swift messaging to interact with blockchain technology, facilitating digital asset settlements with minimal alterations to their existing infrastructure. This development aims to connect decentralized finance (DeFi) with traditional finance (TradFi) by enabling pre-settlement and transaction confirmations through established Swift messaging standards. Chainlink's infrastructure will then convert these messages into blockchain events for on-chain asset locking and payments. Nazarov also addressed the Blockchain Privacy Manager, a new feature that supports private chain integration, highlighting the current lack of privacy in the blockchain industry that hampers capital market adoption of digital assets. While these advancements promise enhanced security for institutions, they also raise concerns regarding compliance with AML and KYC regulations and the potential centralization of privacy controls within the Chainlink ecosystem that may compromise decentralization principles.

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