Société Générale-FORGE in collaboration with Swift successfully piloted the settlement of tokenized bonds using fiat currency and stablecoins, marking an advancement in digital finance.
This initiative signifies a pivotal step toward integrating blockchain with traditional financial systems, promoting faster, secure settlements.
Société Générale-FORGE and Swift Launch Settlement Pilot
Société Générale-FORGE partnered with Swift to trial a system for settling tokenized bonds using stablecoins and fiat currency. This collaboration signifies a notable step forward in integrating traditional finance with blockchain technology, leveraging SG-FORGE’s expertise.
The pilot involved SG-FORGE, Swift, BNP Paribas, and Intesa Sanpaolo. They utilized EUR CoinVertible and USD CoinVertible to explore new settlement methods. Jean-Marc Stenger, CEO of SG-FORGE, emphasized the potential for quick, secure payment systems.
Swift’s Role in Transforming Financial Transactions
This initiative may transform the financial landscape, focusing on efficient settlement. It enables faster, secure transactions and better interoperability between fiat and digital forms, as highlighted by Thomas Dugauquier from Swift.
Potential financial outcomes include broader acceptance of tokenization within capital markets. While exact financial details are undisclosed, the project’s MiCA-compliant nature aligns with current regulatory frameworks, enhancing market confidence.
Tokenized Bonds: Progress Since 2019
This collaboration follows prior developments, including the establishment of tokenized bonds since 2019. The partnership with Swift reinforces Société Générale’s position in digital finance innovation, replicating the success seen with U.S. digital bonds.
Experts like Chris Zuehlke commend the move toward finance modernization. Horacio Barakat suggests that such initiatives increase distribution channels, reflecting a trend toward integrating blockchain in financial markets. Yuval Rooz supports regulated on-chain issuance potential.
Jean-Marc Stenger, CEO, SG-FORGE, emphasized the collaboration’s benefits, stating, “The collaboration supports the adoption of efficient, fast, and secure payment solutions for financial institutions and corporates using distributed ledger technology and EUR CoinVertible as a reference stablecoin.”
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