According to a recent announcement by Swift, the payments company states that it is testing blockchain interoperability with over twenty institutions.
Swift claims that institutions wishing to interact with tokenized assets face the challenge of blockchain interoperability, where each blockchain has its own functionality or liquidity, creating friction and additional costs for companies.
Removing this friction, according to Swift, will help institutions adopt tokenized assets and enable long-term market adoption.
According to Tom Zschach, Chief Innovation Officer at Swift: “It is unlikely there will be one dominant blockchain network. We are collaborating with the global Swift community to test how institutions can smoothly interact with a variety of blockchain networks emerging around the world…
In a new set of experiments, we will collaborate with over twenty major financial institutions, settlement firms, and clearinghouses including Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust & Clearing Corporation (DTCC) – to test how companies can leverage Swift’s existing infrastructure to facilitate the transfer of tokenized value across a range of public and private blockchain networks.”