- According to Swift, banks will start real-time testing of digital asset and money transfers across its network in the upcoming year.
- For the first time, Swift is going to shift from testing blockchain transactions in virtual settings to actual settlement.
Starting next year, Swift said banks in North America, Europe and Asia would begin live trials of digital asset and currency transactions across its worldwide messaging network, which supports more than 11,500 financial institutions.
Blockchain transactions have been tested by Swift in the past in testing settings. Nevertheless, a more sophisticated version of its infrastructure that can for the first time coordinate real-world digital asset and currency transactions across networks will be tested during the trials that take place the following year.
According to the company, the live trials would make use of Swift’s current worldwide network to link several digital and fiat currency platforms, giving banks a single system to trade internationally using both digital and fiat currencies.
The purpose of the experiments is to show how financial institutions may use their present Swift connection to interact interchangeably across developing and existing asset and currency kinds. According to the company, “international financial institutions will be able to conduct pilot transactions for the settlement of digital assets and currencies by utilizing Swift’s global platform.”
The news comes after a string of recent tests by Swift, which involved connecting its network to the Ethereum Sepolia test network using web3 services company Chainlink as an enterprise abstraction layer. The trials showed that Swift may offer a single point of entry to a variety of public and private blockchain networks. It might also assist organizations in developing tokenized assets and central bank digital currencies, which are now being investigated by 134 nations.
“The ability of digital assets and currencies to coexist peacefully with traditional forms of money is essential for their success on a global scale,” stated Tom Zschach, chief innovation officer at Swift. “We are ideally positioned to bridge both emerging and established forms of value, and we’re now focused on demonstrating this in practical, mainstream applications thanks to our extensive global reach.”
According to the company, one of the main goals of the trials is to address the emergence of disjointed digital platforms, which may impede the broad acceptance of novel forms of value. Swift stated, “Although the scale is impressive, global adoption is set to remain fragmented without interconnectivity between platforms.”
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
