Swift launches tokenisation pilot

Blockchain chainBanking cooperative Swift has teamed up with a number of market participants including Northern Trust, SETL and Clearstream to examine the use of tokenisation.

Swift is looking to explore how interoperability can be maintained as the tokenisation market develops. It has recruited both traditional asset servicing firms as well as blockchain specialists to help meet its ambition.

While the tokenisation market is still in its infancy, it is expected to be worth $24 trillion by 2027 according to a recent HSBC report.

A series of experiments will take place in the first quarter of 2022 looking at issuance, delivery versus payment and redemption processes in a bid to support a “frictionless and seamless tokenised asset market”.

According to Swift, one of the key risks in the development of the tokenised market is the creation of a “multiplicity of technologies, platforms and regulatory environments”.

“Our vision for instant and frictionless transactions not only applies to traditional securities instruments but also to new asset classes as well,” said Vikesh Patel, head of securities strategy, Swift.

“The insights from this exercise with leading capital markets participants will help us define and prioritise the concrete steps required to enable seamless processes for tokenised assets,” added Patel.

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