Swift, a global financial messaging network, is actively working to incorporate regulated digital assets and currencies onto its platform.
Building on a series of successful experiments, Swift is working to create a working solution that will enable members to trade digital assets seamlessly.
The primary focus of these developments is testing multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions.
While fiat currencies will be used initially, Swift plans to eventually integrate tokenized forms of currency such as central bank digital currencies (CBDCs) and stablecoins.
This advancement could enable real-time exchange of tokenized assets and payments on the Swift platform.
Swift also addresses growing fragmentation in the digital asset ecosystem.
Blockchain interoperability experiments have demonstrated that Swift’s infrastructure can support the transfer of tokenized value across both public and private blockchains.
Moreover, the CBDC Sandbox project, involving central and commercial banks from Europe, Asia, and North America, demonstrates the feasibility of interconnecting different CBDC networks.
In a broader push for global interoperability, Swift is exploring ways to connect emerging bank-led networks, such as the U.S.-regulated payments network, with other financial infrastructure.
These initiatives aim to bridge the gap between traditional and digital financial systems.
SWIFT said it is working with the financial community to develop the technical solutions needed for digital asset and currency interoperability, with further updates expected ahead of Sibos 2024.
