The financial ecosystem is undergoing a seismic shift with blockchain technology at its core. Swift, alongside global partners like UBS, Chainlink, and central banks worldwide, is pioneering solutions to integrate tokenized assets, central bank digital currencies (CBDCs), and stablecoins into mainstream finance. Below is a curated breakdown of Swift’s latest initiatives reshaping cross-border transactions and digital asset interoperability.
Key Developments in Swift’s Blockchain Integration
1. Tokenized Fund Pilot with UBS and Chainlink
Swift, UBS Asset Management, and Chainlink successfully tested a blockchain-based system for tokenized fund transactions under Singapore’s Project Guardian. The pilot leveraged Swift’s existing network to streamline asset transfers, demonstrating how traditional finance can bridge with decentralized systems.
2. Project Mandala: Regulatory-Compliant Cross-Border Transactions
A collaboration between the Bank for International Settlements (BIS) and central banks (Australia, South Korea, Malaysia, Singapore), Project Mandala embeds compliance rules directly into transaction workflows. This reduces delays and costs in international payments—a hurdle for businesses and individuals alike.
3. 2025 Trial for Tokenized Asset Transactions
Swift announced plans to trial live tokenized asset and digital currency transactions in 2025. This move aims to unify fragmented blockchain ecosystems, enabling institutions to trade digital assets seamlessly via Swift’s messaging network.
4. Japanese Banks Test Stablecoin Transfers via Swift
MUFG Bank, Mizuho, and SMBC are piloting cross-border stablecoin transfers using Swift’s API. The initiative explores how regulated stablecoins can enhance liquidity and reduce settlement times for global remittances.
Emerging Trends in CBDCs and Stablecoins
Universal Digital Payments Network (UDPN) Expands
The UDPN, likened to a "Swift for stablecoins," now supports the Australian Digital Dollar (AUD-CDC). This platform bridges centralized and decentralized finance, enabling interoperability for regulated stablecoins like USDC.
👉 Explore how UDPN is revolutionizing digital payments
Swift’s Multi-CBDC Platform by 2026
Swift plans to launch a platform connecting multiple CBDCs by 2026. This system will integrate central bank digital currencies with traditional banking infrastructure, addressing fragmentation in the CBDC ecosystem.
Blockchain Interoperability and Corporate Data
Swift’s Sandbox Tests with Central Banks
In phase-two trials, Swift is testing CBDC interlinking solutions with three central banks. The focus is on interoperability, ensuring CBDCs can coexist with existing payment systems like Swift’s messaging network.
Successful Tokenization Pilot with SETL
Swift completed a blockchain-based asset tokenization pilot with SETL, Northern Trust, and ClearStream. The project validated how tokenized assets (e.g., bonds, equities) can be traded across disparate blockchain networks.
FAQs
Q1: How does Swift’s tokenization pilot benefit traditional finance?
A1: By enabling asset tokenization (e.g., funds, bonds) on blockchain, Swift reduces settlement times from days to minutes while maintaining security via its trusted network.
Q2: What’s the goal of Project Mandala?
A2: To automate compliance checks in cross-border transactions, eliminating manual reviews and reducing costs for banks and end-users.
Q3: Why is UDPN significant for stablecoins?
A3: It provides a standardized bridge for stablecoins like USDC and AUD-CDC, ensuring they can be used across borders without siloed infrastructures.
👉 Learn more about stablecoin adoption
Conclusion
Swift’s collaborations underscore a strategic pivot toward blockchain interoperability, tokenization, and CBDC integration. These efforts aim to modernize global finance, combining the efficiency of decentralized technologies with the reliability of traditional systems. As trials progress, 2025–2026 could mark a watershed moment for institutional adoption of digital assets.