Starting in 2025, banks in North America, Europe, and Asia will begin testing digital asset transactions via the SWIFT network. As part of the pilot project, financial institutions will conduct operations with cryptocurrencies, tokenized assets, and CBDCs across several blockchains, utilizing the SWIFT payment platform.
Exciting news! Starting next year, financial institutions from around the world will start trialling live digital asset and currency transactions on the Swift network.
— Swift (@swiftcommunity) October 3, 2024
This marks an important milestone in our journey to enable banks to transact interchangeably across both… pic.twitter.com/70BxOMoBpT
Previous experiments have shown that the SWIFT network is capable of solving a key issue in the digital asset space — fragmentation. According to Standard Chartered and Synpulse, the market for tokenized assets could grow to $30 trillion by 2034. A survey conducted by Celent and BNY Mellon revealed that 91% of institutional investors are interested in the digital asset segment.
“To ensure the success of digital assets and currencies on a global scale, it is crucial that they can coexist seamlessly with traditional forms of money. With our vast global reach, we are uniquely positioned to bridge both new and established forms of value, and we are focused on demonstrating this in real-world mass applications,” said Tom Zschach, Chief Innovation Officer at SWIFT.
SWIFT’s Role in the Development of Digital Assets
In 2023, SWIFT expanded the number of participants in its CBDC compatibility pilot testing, assessing how existing payment systems can interact with central bank digital currencies. SWIFT aims to create the infrastructure that allows banks and financial institutions to use both traditional currencies and digital assets for cross-border transactions.
According to research, more than 134 countries are actively exploring the implementation of CBDCs to improve their financial systems. This highlights the importance of global integration of digital currencies and tokenization technologies into existing financial structures.
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