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SWIFT wants to test tokenization in 2022, Clearstream, Northern Trust and SETL participate – Blockchain – Crypto News

SWIFT, the Belgium-based cooperative that acts as an intermediary and executor of financial transactions between banks around the world, plans to experiment with asset tokenization in 2022. In a blog post on the topic, SWIFT states that it will be working with companies like Clearstream, Northern Trust and SETL to explore “the feasibility and benefits” of using SWIFT as an interconnector to tokenization platforms.

Financial intermediary SWIFT is to be used as a tokenization interconnector

The Society for Worldwide Interbank Financial Telecommunications (FAST), has been dealing with cryptocurrencies and blockchain technology for some time. For example, SWIFT published a report in September 2020 that known criminals prefer cash for money laundering as opposed to using crypto for illegal transactions. Over a year later, SWIFT is still focused on this technology, announcing in a blog post published on December 1 that it was participating in an asset tokenization test in 2022 Notice Conditions:

Working with Clearstream, Northern Trust, SETL and others, SWIFT plans to conduct experiments in the first quarter of 2022 to investigate how it can support interoperability in the development of the tokenized assets market.

SWIFT’s report highlights estimates that crypto assets could grow to $ 24 trillion by 2027

The SWIFT report contains many predictions and insights that are scattered throughout the research. The organization explained by some estimates, Crypto assets, stablecoins and tokenized assets could swell to a volume of around “24 trillion USD” by 2027. SWIFT understands that tokenized assets can apply to almost anything, and can also be fractionated. In essence, tokenized assets can help boost liquidity and provide global access for those who might otherwise not be able to obtain these types of assets.

“Tokenization”, the SWIFT report further states. “Can be applied to stocks and bonds, but also to illiquid assets, including commodities, real estate, or even art. For example, a stock or bond with a high value per unit (e.g. over $ 500) can be broken down into digital pieces, each of which has ownership and value. This increases total wealth liquidity and accessibility by allowing a wider segment of the population to invest in assets that may not have been available to them in the past. “

Plans for the first quarter of 2022 include the exploration and use of tokenization for traditional assets, securities, and other types of market infrastructures. “SETL and Northern Trust will be SWIFT and the participants in the integration between the various DLT Environments and with transactional orchestrations that leverage their respective capabilities. The results of the experiments will then be shared with the financial world, ”concludes the SWIFT report. In addition, Vikesh Patel, head of securities strategy at SWIFT, emphasized that the company wants to create an instant and smooth system.

“Our vision for instant and smooth transactions applies not only to traditional securities instruments, but also to new asset classes,” said Patel in a statement. “The insights from this exercise with leading capital market participants will help us to define and prioritize the concrete steps that are required to enable seamless processes for tokenized assets.”

What do you think of SWIFT tests of tokenization concepts in 2022? Let us know what you think on this matter in the comments below.

Jamie Redman

Jamie Redman is the News Lead at News and a Florida-based financial tech journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. As of September 2015, Redman has written more than 5,000 articles for News on the disruptive protocols emerging today.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

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