SETL is to work with SWIFT on an innovation pilot as part of a wider effort to support interoperability in the development of the tokenised asset market.
SETL, SWIFT and other market participants including Clearstream and Northern Trust aim to explore the issuance, delivery versus payment, and redemption processes to support a frictionless tokenised asset market.
The experiments will use both established forms of payment and central bank digital currencies (CBDCs) and will take place in Q1 2022. The results will be shared with the financial community.
The market for tokenised assets is expected to reach US$24 trillion by 2027, according to research from SWIFT.
SWIFT’s focus will be on ensuring interoperability, interconnecting market participants and simplifying their operations by completing activities centrally that would otherwise be performed bilaterally between institutions.
SETL will work with SWIFT and other participants in the experiments on the integration between various distributed ledger technologies (DLTs) and with transaction orchestrations by using their PORTL suite of products.
PORTL provides a toolset for financial institutions to build applications that interoperate between existing infrastructures and a range of ledger technologies including Corda, Besu, Fabric, DAML and SETL's own ledger.
Marjan Delatinne, head of payments at SETL says: “We are entering a pivotal moment of history by connecting the dots between SWIFT and the new tokenised world. This experiment could lay the foundation for better interoperability between participants and systems during the transactional lifecycle of tokenised assets.”
Philippe Morel, CEO of SETL, comments: “We’re delighted to announce this important next step, cementing our position as a leader in the field of regulated tokens and bringing the reality of DLT adoption in financial markets, with all the benefits the technology promises, a little closer.”
