SWIFT, the global bank messaging network, has announced that banks in North America, Europe, and Asia will be conducting live trials of digital assets and currency transactions over its network starting in 2025. This move comes in response to the growing interest in digital assets among financial institutions worldwide.
According to a statement released on October 3, SWIFT will be exploring how banks can utilize their existing connections on the network to process transactions involving both traditional and digital assets. The trials aim to address the connectivity challenges that currently exist between different digital platforms, often referred to as “digital islands,” which can hinder the seamless use of digital assets.
The company highlighted the rapid growth of institutional interest in digital assets, with 134 countries exploring Central Bank Digital Currencies (CBDCs) and the tokenized asset market projected to reach $30 trillion by 2034. SWIFT aims to demonstrate how its network can facilitate the integration of digital and traditional assets to streamline transactions for financial institutions.
Tom Zschach, SWIFT’s Chief Innovation Officer, emphasized the importance of integrating digital assets into the existing infrastructure, stating, “As new forms of value emerge, our intention is to continue offering our community the ability to seamlessly make and track transactions of all kinds of assets – using the same secure and resilient infrastructure that is integral to their operations today.”
To support these efforts, SWIFT plans to enhance its infrastructure to manage digital asset and currency transactions across various networks. The company has already been working on linking public and private blockchains and integrating Central Bank Digital Currencies (CBDCs) and other digital assets.
Collaborations with institutions like the Hong Kong Monetary Authority (HKMA) and Banque de France are already underway in preparation for the upcoming trials. SWIFT is also exploring how its interlinking capabilities could connect bank-led networks, such as the US Regulated Settlement Network, to traditional financial systems.
In addition, SWIFT has joined Project Agora, a Bank for International Settlements-led initiative focused on integrating tokenized commercial bank deposits and tokenized wholesale CBDCs on a unified platform.
Overall, SWIFT’s efforts to facilitate the integration of digital assets into its network demonstrate the company’s commitment to advancing new technologies for financial institutions and paving the way for the seamless use of digital assets in the future. The trials set to begin in 2025 mark a significant step towards bridging the gap between traditional and digital financial systems.
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