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.

Read more: SWIFT Go Launches Low-Cost Network With 7 Major Banks

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