Swift, the 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 advancing efforts to create practical solutions that will enable its members to transact seamlessly with digital assets.
A key focus of these developments is testing multi-ledger Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions.
Initially, these will use fiat currencies, but Swift plans to eventually integrate tokenised forms of money such as central bank digital currencies (CBDCs) and stablecoins.
This advancement could allow real-time exchanges of tokenised assets and payments on the Swift platform.
Swift is also addressing the growing fragmentation in the digital asset ecosystem.
Its blockchain interoperability experiments have demonstrated that Swift’s infrastructure can support the transfer of tokenized value across both public and private blockchains.
Additionally, its CBDC sandbox projects, involving central and commercial banks from Europe, Asia, and North America, have shown the feasibility of interlinking different CBDC networks.
In a broader push for global interoperability, Swift is exploring ways to connect emerging bank-led networks, such as the US Regulated Settlement Network, with other financial infrastructure.
These efforts aim to bridge 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 more updates expected ahead of Sibos 2024.
