Swift has announced plans to streamline the adoption of digital assets, including regulated stablecoins. The growth of the real-world asset (RWA) market, CBDCs, and stablecoins are the main reasons for Swift to take the initiative across the blockchain space.
Swift, a financial messaging network that supports international payment systems, is working towards the broader adoption of digital assets and currencies, including the use of regulated crypto assets.
According to Swift, the goal is for network members to be able to use Swift connectivity to conduct transactions leveraging both traditional currencies and digital assets.
SWIFT Eyes Regulated Digital Assets
The announcement on September 11th came after Swift said the initiative was moving to the next stage after a series of pilot programs, including partnering with blockchain and crypto platforms, with one notable collaboration being with Chainlink.
Many of these moves come as Swift faces stiff competition from blockchain alternatives as it seeks to extend the benefits of tokenization to its members by testing alternative platforms.
We are paving the way for a viable solution that will enable our members to trade regulated #DigitalAssets and currencies interchangeably on the Swift Network.
👉 Check out the next step on this exciting journey: https://t.co/SUwRPAtcdg#DigitalCurrencies #innovation pic.twitter.com/SPn0caIHgJ
— Swift (@swiftcommunity) September 11, 2024
Swift noted that blockchain interoperability experiments have demonstrated that the network's infrastructure is capable of facilitating the transfer of tokenized value across both public and private blockchains.
Apart from real-world assets, Swift has had significant collaborations in the area of ​​central bank digital currencies, an area that has grown amid a surge in stablecoin usage and where the interbank messaging provider believes it can act as a real-world solution for its members.
RWA Market Forecast
Various industry forecasts, including those by Standard Chartered Bank and Simpulse Bank, which predict the RWA market will reach $30 trillion by 2034, further support this outlook.
SWIFT plans to interlink traditional and emerging digital assets amid the tokenization boom, which it says is a path to a viable solution for enabling multi-ledger delivery-to-payment and payment-to-payment transactions.
Both DvP and PvP aim to enable real-time purchase and exchange of tokenized assets at launch.
