Key Highlights
- SG-Forge and SWIFT successfully tested tokenized bonds using both fiat money and the EURCV stablecoin.
- EURCV is the first MiCA-compliant stablecoin that works directly with SWIFT’s systems.
- The trial showed blockchain and traditional banking can work together, enabling faster and secure settlements.
Global bank messaging system SWIFT has tested a euro-backed stablecoin from Societe Generale to see how blockchain and traditional banking can work together.
The trial involved Societe Generale’s blockchain arm, SG-Forge, successfully exchanging and settling tokenized bonds using both fiat currency and the digital EUR CoinVertible (EURCV) stablecoin.
The trial took place on Thursday and demonstrated that tokenized bonds can work with existing payment infrastructure, offering faster settlements and secure, compliant operations through ISO 20022 standards. SG-Forge described EURCV as the first stablecoin onchain that is MiCA-compliant and natively compatible with SWIFT’s systems.
How the Trial Worked
According to the press release, the trial allowed transactions to cover key financial operations such as issuance, delivery-versus-payment (DvP) settlement, coupon payments, and redemption. SG-Forge shared its open-source Compliance Architecture for Security Tokens (CAST), including its security token and the EURCV stablecoin, to support the project.
“This initiative showed that tokenized bonds can leverage existing payment infrastructures, enabling financial institutions and corporates to benefit from faster settlements and secure, compliant operational processes through the integration of ISO 20022 standards,” SG-Forge said.
Banks and Technology Behind the Project
SWIFT works with over 30 banks worldwide on a blockchain-based ledger that started with a prototype developed by Ethereum software firm ConsenSys. The upcoming system will provide a secure, real-time record of transactions, and use smart contracts to make sure rules are followed. Other banks, including BNP Paribas Securities Services and Intesa Sanpaolo, acted as paying agents and custodians during the trial.
The project also proved that tokenized assets can follow ISO 20022 messaging standards, making them compatible with existing banking workflows. SWIFT highlighted that it has worked with UBS Asset Management, Chainlink, Citi, Northern Trust, and the Reserve Bank of Australia on similar projects to link digital assets with traditional finance.
The new ledger will allow 24/7 cross-border payments and help make digital finance safer and faster. Dugauquier said, “This milestone demonstrates how collaboration and interoperability will shape the future of capital markets.”
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