Chainlink unveiled a new system called the Chainlink Runtime Environment on November 16. This framework was created to easily connect traditional financial systems to blockchains.
This new system replaces legacy technologies such as COBOL (used since 1959 for 95% of ATM transactions) and the Java Runtime Environment (JRE), which has been essential to online banking since the 1990s.
Its main goal is to simplify interactions between the many existing financial systems by creating a single layer that hides the complexity of the blockchain. This makes it easier for banks and financial institutions to adopt blockchain.
This initiative builds on Chainlink’s integration with SWIFT, which allows banks to connect to blockchains via the standard interbank messaging system.
To meet the security requirements of institutions, Chainlink has included advanced data protection tools. The Blockchain Privacy Manager and Cross-Chain Interoperability Protocol (CCIP) enable the use of public blockchains while protecting sensitive information.
A pilot project with SWIFT and UBS in November 2024 confirmed the system’s effectiveness in managing digital asset payments, paving the way for broader adoption in the banking sector.
Additionally, Chainlink is exploring the use of artificial intelligence to improve its oracles, including to provide real-time proof of reserves.
In short, this framework marks a major step forward in the union between traditional finance and blockchain, and could accelerate the global use of this technology by banks.
