Swift’s CBDC Interoperability Solution Gains Support from Central and Commercial Banks After Successful Testing

SWIFT, the financial messaging network, has successfully tested its solution for enabling central bank digital currencies (CBDCs) to move between distributed ledger technology (DLT)-based and fiat-based systems.

The company reported that it tested its interoperability solution in a sandbox environment with 18 central and commercial banks. The results showed that the solution enabled the seamless exchange of CBDCs, even those built on different platforms.

During the 12-week testing period, participants processed a total of 4,736 transactions between two different blockchain networks (R3’s Corda and Quorum) and a traditional fiat currency.

The successful testing has garnered the support of the banking community, with participants expressing a desire for continued collaboration on interoperability.

An open, interoperable architecture is essential for secure, frictionless, and evolving cross-border payment flows in the digitisation of currencies. 

David Rego, Global Head of Payments at Standard Chartered

SWIFT plans to develop a beta version of the solution for payments and hold a second phase of sandbox testing, which will focus on new use cases, including securities settlement, trade finance, and conditional payments.

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Learn more about interoperability and cross-border solutions for CBDCs, blockchain, and stablecoins:

• A Game Changer for Cross-Border Payments: Could UDPN Make XRP Obsolete?
• BIS Completes Successful Pilot Study on Retail CBDCs for Cross-Border Payments
• Has SWIFT solved the challenge of interoperability for CBDC-to-CBDC transactions?
• BIS test R3 and Partior Prototypes in mCBDC Bridge Project
• What is Quant Network? Is Quant Overledger the key to connecting blockchains in a multi-chain world?
• Hyperledger Launch Blockchain Integration & Interoperability Framework – “Hyperledger Cactus”
• The Components of a Functioning CBDC – XRP As the Global Bridge?