YEREVAN (CoinChapter.com) — Chainlink has unveiled the Chainlink Runtime Environment, a framework designed to bridge traditional finance systems, payment platforms, and blockchain protocols. The new architecture offers a unified ecosystem to streamline the interaction between legacy financial systems and modern blockchain-based applications.
The framework uses the COBOL standard, a programming language created in 1959. COBOL powers 95% of ATM transactions today. By building on COBOL, Chainlink helps support electronic banking. It also simplifies automation for financial institutions.
Chainlink’s Runtime Environment goes beyond the Java Runtime Environment (JRE), introduced in the 1990s for online banking. This new system lets financial institutions work with thousands of platforms more easily. It also removes many challenges of using old systems.
Chainlink’s Role in Bridging Blockchain and Traditional Finance
At the SWIFT International Banking Operations Seminar (SIBOS) in October 2024, Chainlink showcased its integration with the SWIFT interbank messaging protocol. This partnership allows traditional financial institutions to connect their systems with blockchain platforms, enabling secure and seamless interactions.
Additionally, Chainlink has also introduced tools like the Blockchain Privacy Manager and the Chainlink Cross-Chain Interoperability Protocol (CCIP) Private Transactions. These privacy-enhancing features address institutional concerns about exposing sensitive information on transparent public blockchains.
Tokenized Settlement Pilot with SWIFT and UBS
Notably, in November 2024, Chainlink completed a pilot project with SWIFT and UBS, a Swiss banking institution. The program tested tokenized fund settlements. It allowed legacy systems to connect with blockchain protocols without using cryptocurrencies.
Chainlink has also worked to enhance corporate use cases by integrating proof-of-reserves technology. Above all, by combining blockchain oracles and real-time data, this tool enables businesses to maintain accurate and tamper-proof records of key financial data.
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