A Step into the Future

The global financial messaging leader, SWIFT, is setting the stage for live trials of digital asset transactions, slated to commence in 2025. This marks a monumental shift towards incorporating blockchain technology into the mainstream banking arena. The initiative aims to facilitate real-time transactions encompassing a diverse range of assets, including bonds and digital currencies.

SWIFT to Support Tokenized Assets

The concept of transforming real-world assets into blockchain-based tokens is poised to revolutionize trading methodologies. While this innovative idea has lingered for years, and several asset management firms have ventured into it, the anticipated momentum was not achieved. However, experts foresee a remarkable surge in the value of tokenized assets, potentially reaching an astounding $30 trillion by 2034. SWIFT’s forthcoming live trials might be the pivotal catalyst in unlocking this immense potential, striving to seamlessly integrate tokenized assets with traditional currencies.

Leveraging its expansive global network comprising over 11,000 financial institutions across more than 200 countries, SWIFT is determined to ensure these novel forms of money coexist harmoniously with traditional assets. As per Standard Chartered’s projections, the market capitalization of tokenized assets could escalate to $30 trillion by 2034.

Bridging Digital Islands

One of SWIFT’s primary objectives for these trials is to prevent the formation of isolated “digital islands,” ensuring platforms remain interconnected and conducive to global adoption. Through these trials, SWIFT aspires to demonstrate the feasibility of establishing a global financial ecosystem that accommodates both digital and traditional assets.

The trials are set to encompass diverse domains, including payments, securities settlement, and foreign exchange transactions. Notably, central banks from regions such as Hong Kong and France have already embarked on this transformative journey.