In the first quarter of 2022, payment network SWIFT plans to run innovation pilots to explore interoperability in the tokenized asset market. Participants include Clearstream, Northern Trust, Citi-backed enterprise blockchain firm SETL, and other industry players. These will encompass securities market infrastructures, local custodians and global custodians.
As bonds, stocks, funds, commodities, real estate, and other assets get tokenized, there’s a risk of increasing fragmentation between different blockchain platforms and between the traditional and tokenized worlds.
In the traditional world, the SWIFT network has provided the glue for cross border payments, so it wants to explore a potential role in this tokenized future, particularly in enabling interoperability. Both SETL and Northern Trust will play a role in integrating various DLT platforms.
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