The SWIFT Global Banking Network (SWIFT) announced on September 11 that it plans to add digital assets to its system. This action allows SWIFT users to exchange using digital assets and emerging digital currencies, under specific supervision and rules.
Founded in 1973 in Belgium, SWIFT works to connect banks and other financial institutions. The organization is currely developing an infrastructure that enables the simultaneous exchange of traditional and digital assets.
Matthew Siegel, director of digital asset research at VanEck, says that the only first-layer blockchain that Swift has worked on so far is Ethereum.
He emphasized that SWIFT’s new experimes focus on ieroperability between traditional financial systems and new technologies such as tokenized real assets (RWA) and ceral bank digital currencies (CBDC).
Based on the results of Standard Chartered Research, the market value of RWA assets is expected to reach $30 trillion by 2034. However, Swift faces challenges in this area, including differences in platforms and regulations.
For this reason, SWIFT seeks to create an infrastructure that can facilitate the transfer of tokenized assets between public and private blockchains and help institutional investors buy and sell tokenized assets.
Initially, paymes are supposed to be made in fiat currencies, but in the future there is also the possibility of using tokenized currencies such as CBDCs and legal stablecoins.
Although this developme is promising for crypto infrastructure, the likelihood of using deceralized assets like Bitcoin or Ethereum on the Swift network is still low. However, Ethereum and Chainlink blockchains may benefit from this developme.
