The cryptocurrency and stablecoin-focused arm of French bank Societe Generale (GLE), SG-FORGE, is partnering with Swift, the global interbank messaging system, to exchange and settle tokenized bonds using both fiat and digital currencies, the bank said Thursday.
The transaction was executed using SG-FORGE EURCV$1.1631 stablecoin, the first MiCA [Markets in Crypto Assets]-compliant stablecoin that is natively compatible with Swift, which played an orchestrating role on blockchain platforms and existing payment systems, the bank said.
The transaction “demonstrated the feasibility of key market operations use cases: issuance, delivery versus payment (DvP), coupon payments and redemption,” SG-FORGE said.
Blockchain technology and stablecoin settlement rails are often touted as an alternative to Swift. In this case, SocGen encourages collaboration opportunities between existing and emerging infrastructure.
As such, tokenized bonds can leverage existing payment infrastructures, allowing financial institutions to benefit from faster settlements through the integration of ISO 20022 standards, the bank said.
“This milestone shows how collaboration and interoperability will shape the future of capital markets,” said Thomas Dugauquier, tokenized assets product lead at Swift. “By proving that Swift can orchestrate tokenized asset transactions across multiple platforms, we are paving the way for our customers to confidently and widely adopt digital assets. It’s about bridging existing financial and emerging technologies.”
The trial is part of a broader set of digital asset and currency use cases led by Swift. In September last year, Swift said it would work with more than 30 global banks to develop a shared digital ledger based on blockchain, which will initially focus on enabling real-time, 24/7 cross-border payments.