SWIFT, the Society for Worldwide Interbank Financial Telecommunication, has revealed intentions to help the tokenized asset market, which is quickly increasing.
New Year’s Plan
By the first quarter of 2022, SWIFT, a prominent supplier of secure financial messaging services, has announced intentions to offer tokenized asset markets internationally.
To that aim, SWIFT has stated that in Q1 2022, it would perform “a set of experiments leveraging its trusted role as a central platform” to investigate its potential value in the developing sector. SWIFT is looking at methods to allow and enhance interoperability between users and systems during the transactions of tokenized assets, according to the company.
SWIFT’s emphasis will be on assisting all entities in effectively interconnecting, as well as facilitating the seamless flow of tokenized assets via connecting tokenization platforms. It will only deal with regulated assets, not digital currencies, and will not function as a direct settler of tokenized assets.
SWIFT said it would explore the issuance, delivery versus payment (DVP), and redemption processes to enable a seamless tokenized asset market in collaboration with other major institutions in the sector.
SWIFT’s trials for the next quarter will expand on its previous efforts. For example, SWIFT produced a report in May that looked at its role in promoting CBDC adoption in collaboration with the consultancy company Accenture.
SWIFT’s Chief Innovation Officer, Thomas Zschach, described the obvious match for SWIFT to handle tokenized assets throughout the world:
“As a neutral cooperative with a reach across 11,000 institutions in more than 200 countries, and oversight by central banks globally, SWIFT is uniquely placed to engage closely in the future of securities.”
SWIFT’s statement offers no insight into how these experiments would be done, but it is clear from today’s announcement that SWIFT aims to be a key participant in the burgeoning tokenized assets business.