SWIFT completes second test phase of CBDC with smart contract, atomic settlement capability

SWIFT said connected March 25 that it discovered respective applications for its cardinal slope integer currency (CBDC) solution pursuing a palmy six-month test.

The institution did not make its ain CBDC but alternatively developed an interlinking solution for existing CBDCs — dubbed the SWIFT connector.

The institution wrote:

“At the halfway of our solution is the DLT and astute declaration layer, which maintains accordant records of transactions.”

SWIFT broadly described the level arsenic having applications successful integer trade, securities, and overseas trade. It besides noted that aboriginal versions of the level could beryllium expanded to areas beyond CBDCs, specified arsenic bank-led tokenized deposit networks.

Smart contracts for TradFi

Specific usage cases see commercialized payments, overseas exchange, transportation versus outgo (DvP), and liquidity-saving mechanisms.

SWIFT said its sandbox solution involves aggregate integer ledger exertion (DLT) networks. The institution utilized Hyperledger Besu for the tokenization platform. It utilized R3 Corda and Hyperledger Fabric for purchaser and seller networks and colony instructions.

SWIFT besides described atomic settlements and swaps, a blockchain oregon DLT-based attack to colony involving the instant and simultaneous speech of 2 assets. This benignant of colony is akin to transportation versus outgo (DVP) successful accepted fiscal networks.

The level besides utilized astute contracts to automatically guarantee that payments were executed erstwhile conditions were met. All 4 of SWIFT’s large usage cases progressive the usage of astute contracts.

Largest trial of its kind

SWIFT said its sandbox trial progressive 38 institutions implicit six months and called it “one of the largest known CBDC experiments to date” successful this regard.

It added that, successful presumption of web activity, implicit 125 sandbox users carried retired much than 750 transactions successful the process. About 60 representatives from participating fiscal institutions participated successful 20 collaborative moving radical meetings to sermon usage cases.

The institution plans to make a accumulation roadmap for the SWIFT connector but noted that advancement volition beryllium based connected “market developments and readiness.”

The work could conscionable increasing involvement successful CBDCs astir the world. Countries with progressive CBDCs see China, the Bahamas, Jamaica, and Nigeria. At slightest 130 different countries and regions are besides exploring CBDCs, with caller developments successful Europe, the Philippines, and Spain.

The station SWIFT completes 2nd trial signifier of CBDC with astute contract, atomic colony capability appeared archetypal connected CryptoSlate.