- Banks across Asia, North America and Europe prepare to carry out live transfers via SWIFT.
- The press release comes as global demand for Central bank digital currencies (CBDCs) heightens.
- The CIO of SWIFT disclosed the company’s commitment to bridging the gap between digital and traditional currencies.
SWIFT will be used by banks across North America, Asia, and Europe to conduct live trials of digital asset and currency transactions. This move signals growing mainstream adoption of digital assets and currencies.
SWIFT has already successfully facilitated the transfer of tokenized value on both public and private blockchains, as well as CBDC-related transactions on a global scale. These new trials will be the next step in integrating SWIFT with the evolving digital finance ecosystem.
The press release sheds light on how the North American, Asian, and European banks are going to use SWIFT to conduct trials introducing its network of financial institutions to a wide range of digital currencies and assets. This should allow these institutions to seamlessly integrate with the digital finance ecosystem.
Notably, the first use cases will include Payment-versus-Payment (PvP) transactions, supporting multi-ledger Delivery-versus-Payment (DvP) FX, securities, and trade.
SWIFT CIO Highlights the Importance of Strengthening Digital Assets
Speaking on the recent development, Tom Zschach, the Chief Innovation Officer of SWIFT, stressed. The importance of digital assets, strengthening their relevance through their intersection with the traditional currencies.
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Zschach further explained that using its global reach, the firm is focused on becoming a middleman for emerging and already established forms of value, through real-world, mainstream applications.
Central bank digital currencies have been gaining traction over the years, with as many as 134 countries announcing their collective interest in CBDC explorations.
SWIFT along with its competitors aims to connect institutions with digital assets like CBDCs and solve the industry’s most pressing issues.
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