Swift aims to integrate fiat money with tokenized assets

The global financial messaging network is studying solutions to make its infrastructure work with tokenized assets.

The company said that the multiplicity of platforms and technologies creates a complex environment.

Swift is a system used by 11,000 financial institutions and more than 200 countries.

The global financial messaging system Swift aims to consolidate the bridge between traditional finance and the digital asset ecosystem. The company announced that it is studying ways to integrate fiat money with tokenized assets.

The company's proposal is based on using its network to facilitate interoperability between fiat currencies and tokenized assets. These solutions, which would connect digital assets and currencies with its existing infrastructure, would enable its members (banks and financial institutions) to access the use of these tokenized assets for payments, securities transactions, trade, among others. For its part, Swift is carrying out tests to implement simultaneous transaction settlement mechanisms. This includes trials on delivery-versus-payment (DvP) systems, where securities are only delivered when funds are received, and payment-versus-payment (PvP), which allows simultaneous exchanges in different currencies.

DvP ensures that the exchange of securities (stocks, bonds, etc.) and payment occur in sync, while PvP ensures that two payments are made at the same time in different currencies. Thus, Swift intends for its infrastructure to enable these mechanisms with fiat money and tokenized assets, such as central bank digital currencies (CBDC) or regulated stablecoins. Swift maintains that there are still some problems

The company said it wants to solve a problem that institutional investors are facing.

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