Swift advances into the crypto era with new pilots for digital assets and tokenized transactions.
Banks are preparing to pilot cryptocurrency transactions using the Swift network as the move toward tokenization gains momentum.
Financial institutions are expected to start utilizing Swift’s platform to process “digital assets and currencies” in pilot programs set to begin next year.
Established in 1973, Swift (the Society for Worldwide Interbank Financial Telecommunication) facilitates the initiation of international payments through its messaging network.
With over 11,000 financial institutions connected, Swift handles more than 5 billion financial messages annually.
According to Swift’s Chief Innovation Officer Tom Zschach, “For digital assets and currencies to thrive globally, it’s essential they can integrate effortlessly with traditional forms of money.”
In 2022, Swift claimed it had successfully demonstrated that both Central Bank Digital Currencies (CBDCs) and tokenized assets could move across existing financial systems. The organization noted that when creating a global CBDC infrastructure, familiarity alongside existing financial frameworks is crucial.
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Last year, Swift teamed up with Chainlink and major financial institutions such as BNP Paribas and BNY Mellon to connect private and public blockchains in a trial that was deemed successful.
Additionally, Swift is involved in other initiatives centered on tokenized assets, a market that Standard Chartered predicts could reach $30 trillion by 2034.
One such initiative is Project Agora, led by the Bank for International Settlements, which aims to explore how tokenization can enhance wholesale cross-border payments.
Swift is also investigating how its “interlinking capabilities” might connect the US Regulated Settlement Network with traditional financial systems. In May, Visa and Mastercard announced plans to collaborate with banks like JPMorgan and Citigroup to test this network.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov interessiert sich leidenschaftlich für Bedeutungsfragen. Er ist seit mehr als drei Jahren im Kryptobereich tätig und hat ein Auge dafür, aufkommende Trends in der Welt der digitalen Währungen aufzuspüren. Ob er nun tiefgreifende Analysen liefert oder tagesaktuell über alle Themen berichtet, sein tiefes Verständnis und seine Begeisterung für das, was er tut, macht ihn zu einer wertvollen Ergänzung für das CoinsPress-Team.
