- SWIFT is advancing digital asset interoperability, aiming to connect regulated assets and fiat within its global banking system.
- SWIFT’s blockchain tests show successful cross-network value transfers, linking tokenized assets with public and private blockchains.
- SWIFT is bridging fragmented digital asset platforms, working with central banks to integrate CBDCs and tokenized assets globally.
SWIFT has advanced its digital asset strategy, aiming to integrate regulated digital assets and fiat currencies into its global banking infrastructure. This is an evolution as SWIFT seeks to address challenges related to interoperability in the tokenization market.
According to estimates from Standard Chartered and Synpulse, the market for tokenized assets might grow to $30 trillion by 2034, demonstrating the growing demand for digital assets. Ninety-one percent of institutional investors are eager to engage with tokenized assets, per a BNY Mellon and Celent survey.
However, fragmented platforms and differing regulatory environments have created digital “islands,” complicating efforts to scale these innovations globally. Institutional investors face hurdles navigating multiple tokenization platforms, and while over 130 countries are exploring central bank digital currencies (CBDCs), integration into the global economy remains a challenge.
Blockchain Interoperability and SWIFT’s Strategy
SWIFT has actively tested blockchain interoperability, which has produced promising results. Notably, its experiments showed how SWIFT’s infrastructure could facilitate tokenized value transfers across both public and private blockchains. Additionally, the company has collaborated with central banks in Europe, Asia, and North America, demonstrating the ability to interlink CBDCs on various networks.
Besides, SWIFT aims to offer real-world solutions, focusing on enabling multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions. The payment leg will initially use fiat currencies but is set to evolve into incorporating CBDCs, tokenized commercial bank money, and stablecoins.
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Future of Digital Asset Settlement
Moreover, SWIFT is working on connecting tokenized asset settlement with payment transfers on its network, addressing the challenges posed by the lack of a globally regulated digital form of money. This step is crucial for future DvP transactions involving tokenized assets in real time.
SWIFT’s efforts aim to foster inclusivity and interoperability across emerging digital asset classes. The company continues to collaborate with financial institutions and blockchain platforms, including Chainlink, to achieve seamless asset transfer across multiple networks.
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