SWIFT system developers have announced the successful deployment of a bridge between traditional payment networks and distributed ledger systems worldwide.
In a Press release, SWIFT has demonstrated that the Tokenized assets and central bank digital currencies (CBDCs) can seamlessly circulate through existing financial infrastructure, which represents an important milestone in the integration of cryptoassets into the world of traditional finance.
El SWIFT experiment Solves the challenge of interoperability in border transactions, as it bridges the gap between different distributed ledger technology (DLT) payment networks and traditional payment systems.
The “bridge” uses SWIFT's core capabilities and allows, as transactions are made, CBDCs and tokens are developed and deployed rapidly at scale, facilitating trade and investment in all countries where the international payments network operates.
SWIFT: Tokens, CBDC and fiat money on the same payment network
The platform can serve as an infrastructure to connect other payment platforms, both traditional and blockchain.
The test of this system determines that the platform allows access to several tokenized networks, adding the possibility of issuing, transferring and exchanging tokens. At the same time, it offers interoperability between different tokenization platforms and existing account-based payments infrastructure.
The test has also created a flow from fiat to CBDC, as well as a real-time gross settlement system.
The success of this test demonstrates that blockchain networks can be interconnected for cross-border payments through a single gateway, and that SWIFT's new transaction management capabilities could manage all communication between the different global networks.
Who participated in this experiment?
For the development of this experiment, SWIFT has had the support of companies such as Citi, Northern Trust, SETL, Clearstream or Capgemini, which has been responsible for the deployment of the Quorum and Corda-based DLT networks.
In addition, 14 central and commercial banks from around the world will participate in the following tests, such as HSBC, Wells Fargo, SMBC and Deutsche Bank.
What does the crypto community think about the experiment?
For a large part of the crypto community this type of experiments is a sign of censorship and centralization. This is because more than 11500 banking entities around the world participate in the SWIFT network, which could end up centralizing the use of blockchain, especially in international payments.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
