Swift Trials Euro Stablecoin In Tokenized Bond Payments With Sg-forge

Societe Generale-Forge said its EUR CoinVertible stablecoin is the first MiCA-compliant digital asset that is “natively compatible” with SWIFT’s interoperability capabilities.

Global bank messaging network SWIFT has tested Societe Generale’s euro-pegged stablecoin as part of a collaboration aimed at improving interoperability between traditional financial systems and blockchain-based assets.

Societe Generale’s digital asset subsidiary, SG-Forge, on Thursday announced it successfully completed the exchange and settlement of tokenized bonds in both fiat and digital currencies.

The collaboration involved transactions in SG-Forge’s stablecoin EUR CoinVertible (EURCV), which the bank initially launched on Ethereum in 2023.

“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.

The joint project demonstrated the feasibility of key market operation use cases, including issuance, delivery-versus-payment settlement, coupon payments and redemption.

As part of the cooperation, SG-Forge provided its open-source standard, called Compliance Architecture for Security Tokens (CAST), including its security token and the EURCV stablecoin.

Notably, SG-Forge referred to its EURCV stablecoin as the first onchain settlement asset that is compliant with Europe’s Markets in Crypto-Assets (MiCA) framework and is “natively compatible with Swift’s interoperability capabilities.”

“By proving that Swift can orchestrate multi-platform tokenized asset transactions, we’re paving the way for our customers to adopt digital assets with confidence, and at scale,” SWIFT’s tokenized assets product lead, Thomas Dugauquier, said in a joint announcement.

Related: Barclays makes first stablecoin investment with stake in Ubyx

Source: CoinTelegraph