The Swift system announced through its official website that it will conduct “live” testing with digital assets starting next year. These tests will focus on banks in North America, Europe and Asia, allowing the execution of pilot transactions for the settlement of digital assets and currencies.
Starting in 2025, financial institutions will be able use the Swift platform to carry out transactions that “will demonstrate how financial institutions can transact interchangeably between existing and emerging asset types and currencies using their current Swift connection,” according to the entity.
In detail, Swift will collaborate with its community to test an advanced version of its infrastructurecapable of orchestrating digital asset and currency transactions through networks for the first time. “This move will mark an important milestone towards Swift’s vision of providing a single point of access to multiple digital asset classes and currencies for financial institutions,” the company says.
Tom Zschach, chief innovation officer at Swift, said for digital assets and currencies to “succeed on a global scale,” it is essential that they can “seamlessly coexist with traditional forms of money.”
“With our vast global reach, we are uniquely positioned to bridge emerging and established forms of value, and we are now focused on demonstrating this in mainstream, real-world applications,” the executive argued.
Leveraging the Swift network
While the scale of the Swift network is notable, interconnectivity between platforms is crucial for cohesive global adoption. Live testing will leverage Swift’s existing network to interconnect various digital and traditional currency platformsproviding a single system for cross-border transactions with digital and fiat currencies, thus driving the growth of this market.
Swift is committed to ensuring that the global network of more than 11,500 financial institutions “can support digital assets and currencies through their existing Swift connectivity securely and efficiently.”
The entity also highlighted that testing and collaborations “are a critical step in achieving global interoperability for these new forms of value, and our global network is an essential bridge between traditional and digital asset platforms.”
In mid-September, CriptoNoticias reported Swift’s plans to integrate fiat money with tokenized assets. At the time, the company behind the global banking system stressed that they were “paving the way to real-world solutions capable of interconnecting various forms of digital assets and currencies.”
Previously, in March, Swift was reported to have tested a CBDC platform connecting 200 countries and 12,000 banks, showing the potential of its infrastructure. to cover a wide range of financial transactions in the digital future.
While Swift is recognized as the largest global payments network, there are other large corporations in the financial sector who are actively exploring the terrain of tokenized assets. A notable example is Visa, which launched the Visa Tokenized Asset Platform (VTAP).
This platform is designed to allow banks to issue tokens backed by fiat money on the Ethereum network, as reported by CriptoNoticias. This move by Visa seeks to digitize and automate real-world asset exchange processes, facilitating the purchase of tokenized assets such as commodities and bonds with near real-time settlement.
The VTAP represents an effort by Visa to integrate Bitcoin technology, cryptocurrencies and smart contracts into traditional banking operations, thus allowing a more fluid interaction between traditional and digital finances.
This article was created using artificial intelligence and edited by a human Editor.
