Swift announced a new initiative on September 11 to streamline global transactions and enable its members to use their Swift connections for transactions involving traditional and emerging asset types such as cryptocurrencies.
Swift plans to test multi-ledger delivery-to-payment (DvP) and payment-to-payment (PvP) transactions on its global platform. This will allow securities buyers to simultaneously pay and exchange tokenized assets on Swift’s network in real time.
The new initiative will focus on global transactions in RWAs, an industry expected to reach a market value of $30 trillion by 2034.
Swift said that the global tokenized asset industry has interoperability issues, which has turned different RWA efforts into digital islands. This is mainly due to the lack of a globally recognized form of digital currency. The work will initially use fiat currencies, and later plans to evolve to include CBDCs, tokenized commercial bank money, and regulated stablecoins.
Notably, Swift said it had achieved successful results in value transfer tests involving tokenized assets, and mentioned the two CBDC sandboxes it conducted, which included banks from Europe, Asia, and North America.
In addition, Swift's new attempt to provide a single payment infrastructure for tokenized assets also aims to solve how to integrate different digital assets with their respective bank-dominated networks. (CryptoSlate)
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