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They say if you can’t beat them, join them! The banks after having fought crypto for years, they are finally ready to adopt the technology, and what better sign than the underlaying banking network itself. SWIFT, the global banking network, is preparing to launch digital asset trials in 2025. Banks from North America, Europe, and Asia will be part of these trials, which will explore using different digital currencies and assets.
Easier Access to Digital Assets
The main idea behind the trials is to give banks easier access to digital currencies and assets. They’ll focus on things like payments, foreign exchange, and securities. SWIFT wants to make transactions that involve multiple ledgers (like payment-versus-payment) run more smoothly by linking up different currencies and assets.
Fixing a Fragmented System
Right now, the digital asset world is kind of messy, with lots of different systems that don’t really work together. SWIFT thinks this is a big hurdle to making digital assets widely used. Their plan is to connect these separate “digital islands” and link them with traditional currencies, so banks can handle both digital and regular money in the same system.
Bringing All Assets Together
Tom Zschach, SWIFT’s Chief Innovation Officer, said it’s important for digital currencies to work alongside regular money. He pointed out that for digital assets to really take off worldwide, they need to fit into the current financial system. SWIFT’s goal is to manage transactions for all types of assets, ensuring everything works smoothly together.
SWIFT’s Work with Blockchain
These trials are just one part of SWIFT’s ongoing exploration of blockchain technology. Recently, they joined Project Agorá, which looks at how tokenized assets and CBDCs can work on the same platform. SWIFT is also developing tools to help different blockchains interact, aiming to improve the overall efficiency of financial systems.
