Global money transfer network Swift has developed a comprehensive strategy to bring together fiat currencies and tokenised assets. With this approach, the company plans to offer its users the ability to make easy and efficient transitions between both existing and emerging asset types.
According to Swift's recent announcements, the platform's new structure will enable buyers of securities to simultaneously pay for and trade tokenised assets in real time. ‘We have a strong infrastructure in providing access to digital asset classes in different areas such as payments, securities, foreign exchange transactions and trade. Now, by further developing this infrastructure, we will be able to better serve new digital currencies and asset classes.’
The company's future plans include testing Delivery-versus-Payment (DvP) and Payment-versus-Payment (PvP) transactions with multiple ledgers. These tests could allow tokenised assets to be exchanged for real-time payments. DvP involves the delivery of the security after receiving payment, while PvP enables payments to be made simultaneously.
‘The lack of a globally recognised digital currency can make cash transactions difficult for DvP settlement. Therefore, we are looking at ways to integrate tokenised asset settlement with payment transfers through the Swift network.’
The company stated that it will carry out transactions with fiat currencies in the first phase, but will also include digital assets such as CBDCs and stablecoins in the future.
Last month, Swift conducted various experiments testing the potential of blockchain technology on tokenised assets. It also announced a collaboration with Web3 service provider Chainlink to integrate with the Ethereum Sepolia test network. This collaboration demonstrated that Swift can offer institutions developing tokenised assets a single access point to various blockchain networks.