Society for Worldwide Interbank Financial Telecommunication, or SWIFT, said on October 5 that it had moved central bank digital currencies and tokenized assets on existing financial infrastructure in two separate tests. SWIFT said that the results showed that "CBDCs can be quickly and widely used to make trade and investment easier between more than 200 countries and territories around the world."
Society for Worldwide Interbank Financial Telecommunication, or SWIFT, said on October 5 that it had moved central bank digital currencies and tokenized assets on existing financial infrastructure in two separate tests. SWIFT said that the results showed that "CBDCs can be quickly and widely used to make trade and investment easier between more than 200 countries and territories around the world."
SWIFT is a messaging system made in Belgium that connects more than 11,500 financial institutions around the world. It is one of the most important parts of making international transactions possible. Nine out of ten central banks around the world are actively looking into digital currencies. Through its partnership with Capgemini, SWIFT was able to settle transactions using CBDCs based on different distributed ledger technologies and a payment network that moved money from fiat to CBDC.
Fourteen central and commercial banks, including Banque de France, Deutsche Bundesbank, HSBC, Intesa Sanpaolo, NatWest, SMBC, Standard Chartered, UBS, and Wells Fargo, are now working together in a testing environment to speed up the path to full-scale CBDC deployment.
In the second test, SWIFT showed that its infrastructure could connect different kinds of cash payments to tokenization platforms. Together with Citi, Clearstream, Northern Trust, and SETL, SWIFT looked at 70 scenarios that simulated the issuance and transfer of tokenized bonds, stocks, and cash on the secondary market. The World Economic Forum says that by 2027, the market for tokens could be worth $24 trillion.
