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SWIFT to Launch Live Bank Trials for Digital Asset Transactions in 2025

SUMMARY

  • SWIFT announced that banks will start live trials of digital asset and currency transactions on its network next year.
  • This initiative represents a significant shift from previous experiments with blockchain transactions in testing environments to actual real-world settlements.

 

Beginning next year, live trials of digital resource and currency transactions will be initiated by Swift, including banks in North America, Europe, and Asia through its global messaging network, which services over 11,500 financial institutions. This critical headway from earlier tests with blockchain transactions in testing environments will stamp the first-time real-world applications are piloted. An upgraded framework capable of coordinating consistent transactions over both digital and traditional currency platforms will be utilized.

The live trials will see SWIFT’s existing global network integrated, permitting financial institutions to interchangeably transact with different resource types utilizing their current Swift connections. This activity is outlined to illustrate the potential for conducting pilot transactions for the settlement of digital resources and currencies whereas giving a unified framework for cross-border transactions. The firm aims to facilitate the engagement of numerous financial entities in these trials, exhibiting the system’s capabilities.

This announcement takes after a series of recent collaborations with web3 services firm Chainlink, which have been conducted to illustrate SWIFT’s ability to connect to numerous public and private blockchain systems. These tests have shown that support for the creation of tokenized resources and the development of central bank digital currencies is conceivable, a concept currently being explored by 134 countries. The integration of different digital platforms is anticipated to upgrade the usefulness and availability of financial transactions.

The need for digital resources and currencies to coexist consistently with traditional money has been emphasized by SWIFT’s Chief Innovation Officer, Tom Zschach. He has expressed that a special position exists for Swift to bridge emerging and established value forms, with a focus on illustrating this integration in viable applications. A primary objective of the trials is to counter challenges posed by disconnected digital stages, which can hinder the broad adoption of new forms of value.

As new resource types emerge, the intention is for Swift to provide its community with the capacity to transact and track different resources securely and proficiently. The vigorous framework that supports their operations today is to be utilized, guaranteeing that the scale of operations is matched by consistent connectivity. The commitment to improving interconnectivity within the global financial ecosystem will be significant for the future of digital resources and their integration into traditional financial frameworks.

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