The global financial messaging network, SWIFT, has announced the successful completion of the second phase of sandbox testing for its central bank digital currency (CBDC) interlinking solution, known as a connector.
This phase focused on four key use cases, including digital trading with instant settlement using smart contracts, connecting tokenization platforms for seamless delivery versus payment, and collaborating with CLS Group to link existing foreign exchange infrastructures using CBDC.
The project showcased interoperability by utilizing R3’s Corda, Hyperledger Fabric, and Besu blockchains. SWIFT highlighted the potential benefits, stating that their connector could reduce costs and enhance accessibility for institutions.
During the sandbox experiments, over 125 users conducted more than 750 simulated transactions, demonstrating the capabilities of the SWIFT CBDC interlinking solution. Participants included major financial institutions like ANZ, Citibank, Deutsche Bank, HSBC, and central banks from several countries.
SWIFT plans to further develop the beta version of its connector, focusing on implementing smart contracts, token interoperability, and data security across networks. The initiative reflects SWIFT’s commitment to exploring innovative solutions while leveraging existing technologies.
The completion of this testing phase marks significant progress in SWIFT’s journey towards enhancing financial infrastructure and promoting CBDC adoption in the global financial ecosystem.
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