In a significant advancement for digital asset interoperability, Swift has successfully completed a series of trials involving key financial institutions such as BNP Paribas Securities Services, Intesa Sanpaolo, and Société Générale’s tokenization unit, SG-FORGE. This initiative marks an important extension of Swift’s collaboration with Chainlink and UBS Asset Management, as the messaging network delves deeper into the realm of tokenized capital markets.
The trials were described as a “landmark” achievement, focusing on the seamless exchange and settlement of tokenized bonds, enabling payments in both fiat and digital currencies. Swift emphasized the project’s importance in tackling the most challenging aspects of institutional tokenization, specifically the fluid movement of assets, cash, and operational processes across diverse platforms while allowing banks to maintain their established infrastructures.
The trial demonstrated Swift’s capability to orchestrate tokenized asset transactions in a unified, coordinated manner that bridges blockchain platforms and traditional systems. This marks a significant evolution from previous point integrations, positioning Swift as a neutral facilitator in a market increasingly fragmented by various chains, protocols, and settlement structures.
An essential component of this project was SG-FORGE’s infrastructure, which enabled delivery-versus-payment (DvP) settlement for tokenized bonds by leveraging both fiat and stablecoins. BNP Paribas Securities Services and Intesa Sanpaolo participated as paying agents and custodians, and the successful execution of settlement flows over the Swift network illustrated that tokenized bonds can utilize existing systems without necessitating specialized blockchain solutions.
Moreover, the trials underscored the importance of standardization. Swift highlighted the integration of ISO 20022 messaging with blockchain-native platforms, which is crucial for firms that already operate within ISO-compliant post-trade and payments frameworks.
Thomas Dugauquier, Swift’s product lead for tokenized assets, remarked on the significance of the collaboration: “This milestone demonstrates how collaboration and interoperability will shape the future of capital markets. It’s about creating a bridge between traditional finance and emerging technologies.”
While the trials primarily involved European banking institutions, Swift contextualized the work within a larger framework of pilot projects aimed at integrating tokenized assets with existing payment systems. This includes previous collaborations with UBS Asset Management and Chainlink, where they piloted a model for settling tokenized fund subscriptions and redemptions while ensuring cash settlements remained compatible with established fiat rails.
Swift has also initiated several other trials encompassing various aspects of digital asset management, including collaborations with Citi, Northern Trust, the Reserve Bank of Australia, and firms like HSBC and Ant International focused on ISO 20022-based blockchain interoperability.
In addition to technological advancements, Swift has proactively submitted proposed market practice guidelines to the Securities Market Practice Group. The organization argues that while innovation in digital assets is critical, it must not compromise systemic stability. Clear guidelines can reduce onboarding complexities for institutions entering this new space.
With these trials now concluded, Swift is turning its attention to incorporating a blockchain-based ledger into its infrastructure, aiming for real-time, 24/7 cross-border payments, developed in collaboration with over 30 banks globally.
