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SWIFT plans to investigate tokenized assets in the first quarter of 2022

                                                            <span style="font-weight: 400;">Der globale Anbieter von sicheren Finanznachrichtendiensten,</span> <span style="font-weight: 400;">SCHNELL, </span>plant, im ersten Quartal 2022 ein innovatives Pilotprojekt zu starten, in dem die Interoperabilität im entstehenden Markt für Asset-Tokenisierung untersucht wird.

This is what awaits you in this article

SWIFT for testing tokenized assets

In addition to SWIFT, other participants in the Clearstream initiative, Northern Trust, supported by Citi Blockchain-Companies include SETL and other industry players, the company stated in a recent announcement.

Thomas Zschach, SWIFT’s Chief Innovation Officer, said the organization, which can network more than 11,000 institutions in 200 countries, is strategically positioned to look closely at the future of tokenized securities.

“We look forward to this series of new experiments and the joint innovation with market participants in view of the emerging trend towards tokenized assets,” said Zschach.

The experiments will use both central bank digital currencies (CBDCs) and established means of payment, which may include the US dollar, euro, etc., according to SWIFT.

Interest in Tokenized Assets Surge

Although the Market capitalization of tokenized assets versus Cryptocurrencies appears small, the market is expected to grow to over $ 24 trillion by 2027, added SWIFT.

On this basis, interest in the asset class has increased. Recently, several financial instruments such as stocks, bonds, and other illiquid assets, including commodities and real estate, have been tokenized.

Banks and investment firms are also not left out in tokenization, as these companies respond to tokenization through fractionation, a process that sells fractions of assets as digital tokens to improve liquidity and accessibility.

According to the announcement, the experiment will focus on improving the exchange of information between the participants and systems that interact during the existence of tokenized assets.

“SWIFT plans a series of experiments in the first quarter of 2022 to leverage its proven role as a central platform to examine the issuance, delivery-versus-payment (DVP) and take-back processes to ensure a smooth and seamless market for tokenized assets to support “, it says in excerpts of the report.

SWIFT position threatened by crypto

SWIFT is a communication platform that connects banks and other financial institutions for cross-border payments.

As interest in digital currencies such as cryptocurrencies, CBDCs, and stablecoins grows, there is evidence that the relevance of SWIFT may decline in the near future.

In 2019, SWIFT Chairman Yawar Shah said cryptocurrencies are causing extraordinary changes in the global financial space.


Source: Crypto News Deutsch

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