Swift leads over 30 banks in testing stablecoin bond settlement, accelerating digitalization in traditional finance

Société Générale and Swift’s latest collaboration demonstrates tangible progress in the integration of traditional finance and blockchain technology. This test not only verifies technical feasibility but also showcases how large-scale financial institutions can advance digital transformation within a strict regulatory framework. Behind this lies a broader trend: the tokenization of capital markets has moved from conceptual stages to practical validation.

A Complete End-to-End Tokenized Bond Process Test

Core content of the test

Société Générale’s digital asset division SG-FORGE partnered with Swift to successfully complete the full lifecycle operations of a tokenized bond:

• Issuance of the tokenized bond
• Delivery versus Payment (DvP) process
• Periodic interest payments
• Bond redemption

These four steps may seem simple but actually encompass all key transaction processes of the traditional bond market. DvP (Delivery versus Payment) is particularly important; it is the core mechanism ensuring simultaneous delivery of funds and bonds, preventing settlement risk.

The compliance significance of the stablecoin EURCV

The stablecoin used in this test is EUR CoinVertible (EURCV), with a focus on its compliance with the EU’s MiCA (Markets in Crypto-Assets) regulation. This is not an ordinary stablecoin but a regulated, compliant product subjected to strict oversight.

MiCA compliance implies:

• Issuers must obtain regulatory approval
• They must meet capital adequacy and risk management requirements
• Transparency and investor protection are legally guaranteed

Using a compliant stablecoin rather than other cryptocurrencies for bond settlement reflects traditional finance’s emphasis on regulatory frameworks.

Strategic Significance of Swift

More than just an upgrade to the payment system

While Swift is renowned for its SWIFT codes and international transfers, this collaboration indicates a broader ambition in the digital asset space. Swift’s role extends beyond providing settlement infrastructure; it aims to coordinate cross-platform asset transactions.

This means Swift is building a hub capable of connecting traditional financial systems with blockchain platforms. When over 30 global banks participate in the same project, the value of this hub becomes evident.

Ecosystem layout of over 30 banks

This is not a small-scale collaboration between two institutions but part of a larger digital asset experiment led by Swift. The participation of more than 30 global banks indicates:

• The industry has reached a consensus on this direction
• Participating institutions include major commercial banks
• There is enough scale to drive standardization

Insights for Capital Markets

The practical significance of tokenized bonds

Tokenization is not for speculation but to improve efficiency. Problems in the traditional bond market—long settlement cycles, limited liquidity, high costs—can all be improved within a tokenization framework:

• Settlement can be real-time instead of T+2 or T+3
• 24-hour trading becomes possible
• Intermediary costs can be significantly reduced
• Barriers for small investors to participate are lowered

The refinement of regulatory frameworks

Another important aspect of this test is that it was conducted under the MiCA framework. This indicates that the EU’s regulation of crypto-assets has matured enough to support innovation in traditional finance. Regulators in other regions are also observing this case, which could promote the standardization of global regulatory practices.

Summary

This collaboration and testing between Swift and Société Générale mark a critical moment where capital market digitization transitions from theory to practice. Using compliant stablecoins, involving traditional financial participants, and completing full bond transaction processes within a strict regulatory environment showcase a mature path for digital finance. When over 30 global banks are involved, this is no longer an isolated case but an industry trend. The key moving forward is how these test results will translate into real-world applications and when other asset classes (such as equities and derivatives) will follow suit.