Banks’ SWIFT Messaging System to Experiment With Tokenized Assets in Early 2022

The interbank messaging network’s experiments will use central bank digital currencies as well as established forms of payment.

AccessTimeIconDec 23, 2021 at 11:56 a.m. UTC
Updated Mar 1, 2022 at 2:33 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

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 CBDCs.



Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC