Swift says blockchain integration ‘more plausible’ than unifying CBDCs
1 min read
Bank messaging network Swift has recently shared a report highlighting how Swift can connect with blockchains and solve the issue of interoperability between different blockchain networks.
In a report titled “Connecting blockchains: Overcoming fragmentation in tokenised assets,” Swift
In a press release, Swift’s chief innovation officer Tom Zschach said that tokenization can reach its full potential once institutions can connect to the whole financial ecosystem. Zschach explained:
“Our experiments have demonstrated clearly that existing secure and trusted Swift infrastructure can provide that central point of connectivity, removing a huge hurdle in the development of tokenization and unlocking its potential.”
Within the report, Swift pointed toward many potential benefits of tokenization, which include increased liquidity and automation as well as enhanced transparency and security.
Apart from these, the banking infrastructure highlighted that while tokenization has its benefits, it also has significant hurdles such as legal and regulatory frameworks being still under development. According to Swift, this remains a challenge for institutions when diving into making tokenized asset transactions.
Magazine: SEC reviews Ripple ruling, US bill seeks control over DeFi, and more: Hodler’s Digest, July 16-22
