SWIFT plans a series of experiments in Q1 2022 to explore issuance, delivery versus payment (DVP), and redemption processes in support of the development of tokenized asset markets. These experiments will use both established forms of payment and central bank digital currencies (CBDCs).
Clearstream, Northern Trust, SETL and other industry participants will be part of exploring the feasibility and benefits of SWIFT as an interconnector, linking up multiple tokenization platforms and various cash-leg payment types. The experiments are scheduled for Q1 2022, and SETL and Northern Trust will support SWIFT and the participants in the integration between the various DLT environments and with transaction orchestrations using their respective capabilities.
“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,” said Thomas Zschach, chief innovation officer at SWIFT, in a statement.
“Our vision for instant and frictionless transactions not only applies to traditional securities instruments but also to new asset classes as well,” saud Vikesh Patel, head of Securities Strategy at SWIFT, in a statement. “The insights from this exercise with leading capital markets participants will help us define and prioritize the concrete steps required to enable seamless processes for tokenized assets.”
Anthony Culligan, chief engineer at SETL, said in a statement: “We are very pleased to be contributing to this important initiative. We see significant innovation in securities tokenisation at the moment and these experiments have the potential to create broader accessibility and interoperability between the emerging networks.”