[DigitalToday reporter Chi-kyu Hwang] Global financial messaging network SWIFT has completed a tokenised bond settlement using Societe Generale’s (SG) euro stablecoin, Cointelegraph reported on Jan. 15.
The test was carried out as part of cooperation to improve interoperability between traditional financial systems and blockchain-based assets.
SG-Forge, Societe Generale’s digital asset unit, completed exchange and settlement between fiat currency and digital currency using the euro stablecoin EURCV (EUR CoinVertible). SG-Forge explained that the stablecoin is the first on-chain settlement asset to comply with Europe’s Markets in Crypto-Assets (MiCA) rules and has “native compatibility” with SWIFT’s interoperability features.
Through the project, SWIFT demonstrated the feasibility of executing key market operating use cases such as issuance, settlement, coupon payments and redemption. SG-Forge provided an open-source standard called the Compliance Architecture for Securities Tokens (CAST) that includes security tokens and the EURCV stablecoin.
Thomas Dugakier, product lead for SWIFT tokenised assets, said, “It has proven that SWIFT can coordinate multi-platform tokenised asset transactions.” He added, “This test has opened the way for customers to trust digital assets more and adopt them at scale.”