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SWIFT is a Belgian-based cooperative that acts as an intermediary and settlement execution agency for global interbank financial transactions. It plans to experiment with asset tokenization in 2022. In a blog post on the subject, SWIFT stated that it will work with companies such as Clearstream, Northern Trust and SETL to explore the “feasibility and benefits” of using SWIFT as a tokenized platform interconnector.
Financial intermediary SWIFT will be used as a tokenized interconnector
Global Interbank Financial Telecommunications Association (fast), Research on cryptocurrency and blockchain technology has been for some time.For example, SWIFT published a Report In September 2020, the report pointed out that criminals prefer to use cash for money laundering compared to using cryptocurrency for illegal transactions. More than a year later, SWIFT is still focusing on this technology and revealed in a blog post published on December 1 that it is participating in the asset tokenization test in 2022. announcement state:
In cooperation with Clearstream, Northern Trust, SETL and other companies, SWIFT plans to conduct experiments in the first quarter of 2022 to explore how it supports interoperability in the development of tokenized asset markets.
The SWIFT report highlights the estimate that crypto assets may grow to 24 trillion U.S. dollars by 2027
SWIFT’s report has many predictions and insights scattered throughout the study.The organization explained Some estimatesThe number of, encrypted assets, stablecoins and tokenized assets may swell to around $24 trillion by 2027. SWIFT understands that tokenized assets can be applied to almost anything and can be subdivided. In essence, tokenized assets can help enhance liquidity and make them accessible to people worldwide who cannot obtain these types of assets.
“Tokenization”, the SWIFT report further pointed out. “It can be applied to stocks and bonds, and it can also be applied to non-current assets, including commodities, property, and even artworks. For example, stocks or bonds with a high value per unit (for example, more than 500 US dollars) can be divided into digital parts, and each part has Ownership and value. This increases the overall liquidity and accessibility of assets, allowing a wider group of people to invest in assets that they may not have available in history.”
The plan for the first quarter of 2022 will require research and use of the tokenization of traditional assets, securities, and other types of market infrastructure??. “SETL and Northern Trust will support the integration between SWIFT and the participants Distributed Ledger Technology Environment and business orchestration use their own functions. The results of the experiment will be shared with the financial community afterwards,” the SWIFT report concluded. In addition, Vikesh Patel, head of securities strategy at SWIFT, emphasized that the organization wants to create an instant and frictionless system.
“Our vision for instant and frictionless trading applies not only to traditional securities instruments, but also to new asset classes,” Patel said in a statement. “The insights from this exercise with leading capital market participants will help us define and prioritize the specific steps required to achieve a seamless process for tokenized assets.”
What do you think about SWIFT testing the tokenization concept in 2022? Please tell us your thoughts on this topic in the comments section below.
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