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CBDCs, tokens can integrate to existing payments systems, SWIFT claims

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The Society for Worldwide Interbank Financial Telecommunication (SWIFT) said it had a breakthrough in enabling assets on distributed ledger technology networks, such as central bank digital currencies (CBDC) and tokens on the blockchain, to interact and flow with the existing financial infrastructure.

See related article: SWIFT, Chainlink announce cross-chain interoperability partnership

Fast facts

  • In one of two experiments, 14 central and commercial banks explored CBDC integration into existing payment networks to achieve global interoperability, the interbank messaging network said in a press release on Wednesday.
  • The second experiment sought to achieve global interoperability among different tokenization platforms.
  • The tokenized assets market is expected to make up 10% of global gross domestic product by the end of the decade, according to a recent study from consulting firm BCG and digital exchange ADDX. 
  • Meanwhile, CBDC interoperability is becoming critical to the future financial system as at least 105 countries have started exploring digital fiat, according to the Atlantic Council
  • “For CBDCs, our solution will enable central banks to connect their own networks simply and directly to all the other payment systems in the world through a single gateway, ensuring the instant and smooth flow of cross-border payments,” Tom Zschach, chief innovation officer at SWIFT said in the press release.

See related article: Singapore Deputy Prime sees “tremendous potential” in tokenization and DLT



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