Global interbank messaging network SWIFT plans to explore how it can support interoperability in the tokenized asset market.
- SWIFT is planning a series of experiments in the first quarter around improving the exchange of information between the participants and systems that interact during the lifecycle of tokenized assets, according to a Tuesday announcement.
- The experiments will use central bank digital currencies (CBDCs) as well as established forms of payment.
- The organization, which links more than 11,000 institutions, aims to support the issuance, delivery-versus-payment and redemption processes, demonstrating how it could support “a frictionless and seamless tokenized digital asset market.”
- Following the example of the crypto world, banks and securities firms are offering services whereby fractions of assets are sold as digital tokens to allow for greater liquidity and accessibility.
- SWIFT is a global messaging network connecting banks and other financial institutions for cross-border payments. There have been suggestions its usefulness could decline because of the growth in use of digital currency – be it crypto, stablecoins or central bank digital currencies.