The international money transfer system SWIFT plans to test real-time transactions of tokenized assets and digital currencies in 2025. About this informs Reuters on October 3 with reference to company information. Such a move could be an important step towards the gradual integration of such assets into the global financial system.
Banks and asset managers have been exploring the possibility of “tokenization” of traditional financial instruments such as bonds for several years. They hope that the use of blockchain-based tokens will speed up trading, reduce costs and increase efficiency, particularly by eliminating middlemen who are usually involved in many transactions.
About 90% of the world’s central banks are also experimenting with central bank digital currencies (CBDCs), which are digital versions of fiat money. This simplifies the process of trading tokenized assets. SWIFT, which plays a key role in the global banking infrastructure, is involved in testing both CBDCs and tokenized assets. In March, the company announced the launch of a new platform to integrate CBDC into the existing financial system.
According to Nick Kerrigan, SWIFT’s head of innovation, there is now a demand in the industry for digital assets to move actively, with the possibility of exchanging them for real money. Next year, a transition to a new stage is expected, when such transactions will take place, albeit in a controlled manner.
Despite the great potential, the market for tokenized assets remains fragmented, and many initiatives have not gone beyond the banks’ internal systems. At the same time, the popularity of CBDC is growing worldwide. The COVID-19 pandemic has accelerated the move to digital and contactless payments, in part because of fears that cash could carry the virus (later disproved). In parallel, cryptocurrencies created by private companies or communities, such as Bitcoin, continue to develop and grow in value.
In response to these trends, 87 countries representing more than 90% of global GDP are currently exploring the possibility of implementing central bank digital currencies.
