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Banks will join SWIFT digital asset trials starting in 2025

Banks will join SWIFT digital asset trials starting in 2025

GrafaGrafa2024/10/04 04:10
By:Mahathir Bayena

SWIFT announced that banks across North America, Europe, and Asia are preparing to participate in digital asset trials on its network in 2025. 

According to the announcement, the trials will involve transactions incorporating multiple digital currencies and assets. 

SWIFT aims to explore how its banking network can facilitate seamless access to a variety of digital asset classes and currencies. 

The trials will focus on use cases including payments, foreign exchange, and securities, enabling multi-ledger transactions. 

This initiative highlights SWIFT’s intention to unify the fragmented digital asset landscape, addressing the challenges posed by an increasing number of disconnected platforms and technologies. 

The global banking network seeks to bridge these “digital islands” and integrate them with traditional fiat currencies, allowing financial institutions to transact using both digital and conventional forms of value. 

Tom Zschach, SWIFT’s chief innovation officer, emphasised that the organisation is focused on building real-world applications for digital assets. 

He stated, “For digital assets and currencies to succeed on a global scale, it’s critical that they can seamlessly coexist with traditional forms of money.” 

Zschach highlighted that the trials are part of SWIFT's strategy to cover “all kinds of assets,” ensuring interoperability between traditional and digital currencies. 

SWIFT has been actively involved in blockchain-related initiatives. 

It recently collaborated with the Bank for International Settlements on tokenisation projects, further strengthening its role in the evolving digital financial landscape. 

The trials represent another significant step in SWIFT's efforts to integrate digital assets with traditional financial systems, though the specific assets to be included remain undisclosed. 

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