Swift is set to initiate live trials of digital asset and currency transactions through its network starting next year. The proposed pilot programs will allow financial institutions in North America, Europe, and Asia to conduct transactions across both existing and emerging asset and currency types using the Swift platform.
These trials aim to interlink various digital and traditional currency platforms, creating what Swift describes as “a single system for banks to transact across borders with digital and fiat currencies.” This approach is designed to address the issue of “digital islands” and mitigate the challenges posed by disconnected digital platforms, which may hinder the widespread adoption of new forms of value.
Swift states, “This marks a giant leap forward from our prior experimentation, with a deliberate focus on providing interlinking and orchestration capabilities that could support real-world solutions.” In preparation for these trials, Swift has begun exploring methods to integrate traditional financial systems with emerging bank-led networks, such as the US Regulated Settlement Network, leveraging its interlinking capabilities.
Additionally, Swift is involved in Project Agorá, which investigates the integration of tokenized commercial bank deposits and tokenized wholesale central bank digital currencies (CBDCs) on a unified platform under the auspices of the Bank for International Settlements (BIS).
Tom Zschach, Swift’s Chief Innovation Officer, emphasized the necessity for digital assets to coexist with traditional forms of money to achieve global success. “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,” Zschach commented.
Similar News:
FIS Launches Digital Trading Storefront to Enhance Cross-Asset Trading Experience
