Bank-to-bank messaging network Swift is to add a blockchain-based shared ledger to its infrastructure having successfully completed digital asset interoperability trials in collaboration with BNP Paribas Securities Services, Intesa Sanpaolo and Societe Generale – Forge.
Editorial
This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.
The trial enabled the exchange and settlement of tokenised bonds, while supporting payments in both fiat and digital currencies. For the trial, Swift harnessed SG Forge’s digital asset and EURCV stablecoin to enable DvP settlement for tokenised bonds using both fiat currency and stablecoins, as well as supporting key lifecycle events such as interest pay-outs and redemption.
The initiative focused on key processes such as delivery-versus-payment (DvP) settlement, interest payouts and redemption of tokenised bonds with roles including paying agent, custodian and registrar.
This work is part of a broader series of digital asset and currency use cases trialled by Swift, which is now focussing on adding a blockchain-based ledger to its technology infrastructure. The ledger will initially focus on enabling real-time, 24/7 cross-border payments, designed in collaboration with over 30 banks worldwide.
In so doing, Swift aims to connect existing rails with emerging digital ecosystems, leveraging both ISO 20022 and ISO 15022 standards, as well as agreed market practices.
Thomas Dugauquier, tokenised assets product lead at Swift, says: “By proving that Swift can orchestrate multi-platform tokenised asset transactions, we’re paving the way for our members to adopt digital assets with confidence, and at scale. It’s about creating a bridge between traditional finance and emerging technologies.”