Crypto banks across North America, Europe, and Asia are set to join a new phase of digital asset trials led by the global messaging network SWIFT.
As per the press release, these trials will center on using the SWIFT platform to handle CBDCs and other types of tokenized asset transactions. This initiative aims to show that SWIFT can connect more than four billion accounts across 200 countries.
It will enable seamless value transfers between public and private blockchains. SWIFT has already been capable of bridging tokenized value across chains of custody in different blockchain systems. Thereby connecting CBDCs on a global platform and interoperating with both digital asset and fiat currency networks.
Further trials of applications will be studied in due course, allowing financial institutions a single window of access to digital assets and currencies.
Crypto-focused tests on payments and securities transactions
In the initial stages, they will test payments, foreign exchange, and securities transactions. Efficient multi-ledger systems empower these areas to provide delivery-versus-payment and payment-versus-payment settlements.
The crypto space is growing as 130-plus countries take a closer look at the CBDCs, and the estimation for tokenized assets reaches $16 trillion by 2030. While this happens, the growth of unconnected platforms creates the problems of fragmented “digital islands,” making global adoption hard to achieve fully.
SWIFT seeks to help settle this challenge by leveraging its central position in the financial system to link the insulated networks. It will enable seamless transactions between traditional fiat currencies and digital assets.
SWIFT is also currently involves in other projects, such as Project Agorá, further pinning its position in the integration of tokenized assets. CIO Tom Zschach stated that crypto assets need to be able to live together with traditional money. Moreover, he asserts that SWIFT can bridge both worlds.
Yet, the forthcoming trials aim to test how financial entities can take advantage of SWIFT’s resilient and secure infrastructure to execute all classes of asset transactions on the budding digital frontier.
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