A Swift-led pilot has successfully established a common framework that links tokenisation systems between Central Securities Depositories (CSDs) and global custodians.
Currently, the market capitalisation of tokenised assets is relatively small compared to cryptocurrencies and stablecoins, but the momentum for these digital assets is projected to accelerate significantly in the coming years, with estimates suggesting volumes could reach approximately $24 trillion by 2027.
In December, the messaging network Swift partnered with Clearstream, Northern Trust, and DLT specialist SETL to explore ways to support the development of the tokenised asset market. Their focus is on ensuring interoperability, connecting market participants, and streamlining operations through centralised activities.
The partners conducted a series of experiments related to the issuance, delivery versus payment, and redemption processes, aiming to foster a seamless and frictionless tokenised asset market.
Vikesh Patel, head of securities strategy at Swift, stated: “Our vision for instant and frictionless transactions applies not only to traditional securities but also to new asset classes.”
SETL collaborated with Swift and the other participants in experiments that integrated various DLT environments and facilitated transaction orchestration using the firm’s PORTL suite of products.
Marjan Delatinne, head of payments at SETL, remarked: “We are entering a pivotal moment in history by connecting the dots between Swift and the emerging tokenized world. This experiment could lay the groundwork for universal interoperability among participants and systems throughout the transactional lifecycle of tokenised assets.”