SWIFT Celebrates ‘Major Milestone’ In Streamlining Cross-Border Transfers

financial messaging system fast claims to have “solved” interoperability challenges in cross-border transactions as a “major step in unlocking the possibilities of the digital future.”

According to SWIFT, its experiments showed that central bank digital currencies (CBDCs) and tokenized assets can move seamlessly over existing financial infrastructure.

of collaboration When capgeminiSWIFT enabled CBDC-to-CBDC transactions across different distributed ledger technology (DLT) networks based on: quorum When Corda As well as fiat-to-CBDC flows between these networks and real-time gross settlement systems,

According to SWIFT, this means that as CBDCs and tokens develop, they can be rapidly deployed at scale to facilitate trade and investment between more than 200 countries and territories around the world.

while inside another experiment When City, Clearstream, Northern Trust When Settle, SWIFT has demonstrated that its infrastructure can serve as an interconnect between multiple tokenization platforms and different types of cash payments. SWIFT investigated 70 scenarios simulating market issuance and secondary market transfers of tokenized bonds, stocks and cash.

experimental success

Tom SchachChief Innovation Officer fast, said: For CBDCs, our solution will enable central banks to easily and directly connect their networks to all other payment systems around the world via a single gateway, enabling instant and instant cross-border payments. A smooth flow is guaranteed.

Tokenization has great potential in terms of enhancing market liquidity and increasing access to investment opportunities. We can make it happen when the opportunity arises.

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SWIFT, which connects more than 11,500 financial institutions and 4 billion accounts in 200 countries and territories, said the experiment is part of a broader innovation plan to enable fast, frictionless, interoperable cross-border transactions. It is said that

next step

for Andrew EdemHead of Innovation at Fintech Unicorn PPROthe possibility of streamlining cross-border transfers with immediate transfer of value between institutions could greatly improve existing correspondent banking systems, but to become truly practical for payments, Cryptos must interoperate with existing financial system infrastructure.

Edem said:

It is also important to understand that in this context we are referring to ‘wholesale’ CDBCs that are only transferred between financial institutions, not retail CDBCs that consumers keep in their wallets. “