TLDR:
- SWIFT plans to trial live digital currency and tokenized asset transactions in 2025
- The trials aim to integrate digital assets with traditional financial systems
- 134 countries are exploring CBDCs, with tokenized assets projected to reach $16 trillion by 2030
- SWIFT seeks to address fragmentation in the digital asset landscape
- Initial use cases will focus on payments, FX, securities, and trade transactions
Global financial messaging network SWIFT has announced plans to conduct live trials of digital currency and tokenized asset transactions starting in 2025.
This move marks a big step in the integration of digital assets into the mainstream financial system, as SWIFT leverages its vast network to connect various digital platforms with traditional finance.
The trials will involve central and commercial banks using SWIFT’s infrastructure to execute transactions across multiple digital asset classes and currencies. This initiative follows SWIFT’s successful demonstrations of transferring tokenized value across different blockchain networks and interlinking central bank digital currencies (CBDCs) globally.
According to recent industry figures, 134 countries are currently exploring CBDCs, highlighting the growing interest in digital currencies among global financial institutions. Additionally, the tokenized asset market is projected to reach a substantial $16 trillion by 2030, underscoring the potential impact of these new financial instruments.
SWIFT’s Chief Innovation Officer, Tom Zschach, emphasized the importance of seamless coexistence between digital assets and traditional forms of money for global adoption.
He stated, “For digital assets and currencies to succeed on a global scale, it’s critical that they can seamlessly coexist with traditional forms of money.”
The upcoming trials aim to address the fragmentation in the digital asset landscape, which has resulted in a complex web of isolated platforms and technologies.
By leveraging its unique position at the heart of the financial system, SWIFT intends to interlink these disparate networks and enable its global community to transact using both digital and traditional forms of value through their existing infrastructure.
Initial use cases for the trials will focus on key areas of finance, including payments, foreign exchange (FX), securities, and trade. The trials will explore multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions, demonstrating the potential for streamlined and efficient cross-border settlements.
SWIFT’s involvement in Project Agorá, a Bank for International Settlements-led initiative, further underscores its commitment to exploring the integration of tokenized commercial bank deposits and wholesale CBDCs on a unified platform.
The financial messaging network’s vast global reach positions it uniquely to bridge emerging and established forms of value. SWIFT currently connects more than 11,500 banking and securities organizations, market infrastructures, and corporate customers across over 200 countries and territories.
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