SWIFT: We are taking action to simplify the global flow of digital assets and currencies

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SWIFTThe Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a global financial communications network that provides standardized,SafetyAs the hub for global cross-border payments and financial information transmission, SWIFT connects more than 11,000 institutions in more than 200 countries to ensure the efficient operation of international transactions. It not only reduces the complexity and risk of cross-border transactions through a unified message format, but also promotes the interoperability of digital assets and emerging currencies, providing strong support for innovation in the global financial market. This article reviews Swift's important experimental results and looks forward to its future development direction in the field of digital assets and central bank digital currencies (CBDCs).

We are forging a path toward real-world solutions that will enable our members to access and trade regulated digital assets and currencies on the Swift network. This follows in recent years with ourCommunityAfter a series of groundbreaking experiments, we are now entering the next phase.

Interest in digital assets and currencies continues to grow, and the past two years have given us a clearer understanding of the potential value of these developments in the industry.

Predictions for the growth of digital assets vary. For example,Standard Chartered Bank and Synpulse Recent estimates show that by 2034, real-worldTokenThe scale of the digital asset market will reach 30 trillion US dollars. Celent and BNY Mellon According to a survey conducted byTokenInterested in chemical assets.

Our vision is to enable our members to use their Swift Connect and trade with existing and emerging asset and currency types.

Eliminating digital silos

However, before digital assets and currencies can truly scale globally, several challenges must be overcome. The most important of these is the growth of different platforms, technologies, and regulatory environments that support digital innovation. This has led to the formation of a fragmented "digital island" ecosystem, increasing the costs and risks for market participants in their operations.

For example, institutional investors are unable to expand their digital asset businesses due to the complexity of multiple tokenization platforms.Atlantic Council Data shows that more than 130 countries and monetary unions are currently exploring central bank digital currencies (CBDCs), but a lot of work still needs to be done to integrate these emerging currencies into the broader global economy.

Driving global interoperability

Over the past 50 years, Swift has played a vital role in promoting global interoperability and enabling fast, frictionless,SafetyTrading played an important role.As we enter the next phase of our strategy, we will continue to enhance our interoperability with new systems, technologies, assets and currencies.

In our Innovation Lab, we have been actively exploring potential solutions for extending global interoperability to central bank digital currencies (CBDCs) and tokenized assets for many years. Recently, we have brought together industry forces to carry out a series of groundbreaking research projects to explore how existing Swift capabilities and infrastructure can effectively support interoperability between different asset classes and network types.

Our successBlockchain interoperability experimentDemonstrates how Swift’s infrastructure can facilitate the tokenization of value in both public and private sectorsBlockchainTransfer between ourPhase 1andPhase IIThe Central Bank Digital Currency (CBDC) Sandbox project – conducted in partnership with leading central banks and commercial banks from Europe, Asia and North America – demonstrates how we can connect CBDCs across different networks and connect multiple asset and cash networks.

Now we are taking our goals to a higher level

Our vision is to enable our members to leverage their Swift connections to trade swaps, using both existing and emerging asset and currency types.

We have a proven track record as a trusted and efficient central platform for transactions using fiat currencies and securities instruments. Now, we are further developing our infrastructure to provide our members with equal access to emerging digital asset classes and currencies, covering multiple application scenarios such as payments, securities, foreign exchange, trade, etc.

Building on our experience, we are paving the way for real-world solutions that connect all forms of digital assets and currencies—including plans to testSafetyEnable multi-ledger delivery-vs-payment (DvP) and payment-vs-payment (PvP) transactions on a global platform. In the future, this may enable securities buyers to pay and exchange tokenized assets in real time on our network.

The cash component of DvP settlement execution is particularly challenging due to the lack of a globally accepted digital currency. We are therefore looking for ways to connect tokenized asset settlements with corresponding payment transfers made on the Swift network. The payment component will initially use existing fiat currencies, but will later be able to use tokenized forms of currency such as central bank digital currencies (CBDCs), tokenized commercial bank money, or regulated stablecoins.

Finally, we are also testing our interconnect capabilities as a technical solution for connecting emerging bank-led networks, e.g.US Regulatory Settlement Network) is interconnected with other financial infrastructure.

What happens next?

While much has been achieved, much more remains to be done.

We will continue to work with financialCommunityCollaborate to develop the technical solutions needed to enable interoperability and access to digital assets and currencies. In the coming months, we will also explore the impact of implementation on workflows, standards and market practice requirements to achieve scale - in Sibos 2024More information will be provided before.

我们对数字资产和货币在我们网络上的未来感到兴奋，并将继续与我们的Community合作，推动这一领域的进展。

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