“The company that underpins the Global Financial Messaging System Is Building Infrastructure for Onchain Settlement As It Seeks a Role in Blockchain-Based Finance.”, – WRITE: www.coindesk.com
This Week, The Network Unveiled Plans to Build a Shared Ledger Platform that Will Let Banks Settle Transactions Involving Stablecoins and Tokenized Assets Across Multiple Blocchins.
While Swift Has Long Served As the Messaging Layer for Cross-Border Money Movement, The New Platform Wound Put IT Closer to the Center of Value Transfer.
That’s a major shift for a more than 50-year-of traditional Financial organization KNOWN for Handling Communications Between More Than 11,500 BANKS, NOT for MOVING MONEY ITHF.
Swift’s Changing Role”The Big Development Is Swift’s Changing Business Model to Cope with Blockchain DisinterMediation,” Said Noelle Acheson, Author of the Crypto is macro now Newsletter. “Swift, Today, Does Not Transfer Value; It Sends Messages. Onchain, The Message and the Transfer Are The Same Thing.
Acheson Argued The New Platform Could Act As A “Switching” Layer for Digital Currencies and Tokenized Assets, Bridging OtherWise Siloed Systems. However, She Questioned Whther Swift is Still Essential in a World of Programmable Money.
“Is Swift Necessary in a Tokenized Financial System? No, It’s Not – But It Does Have Connections with Virtual All Global Banks,” She Said.
Onboarding Banks to StablecoinsThose Connections Could Give Swift An Edge As Banks Look for a Path Into the Blockchain Economy.
“The Industry Is Moving at A Rapid Pace, and Stablecoins Are Being Adopted Globally at Such A Speed That Traditional Banks Arek AT OPENPAYD.
SWIFT SAID OVER 30 FINANCAL INSTITATIONS ALREADY ENGAGED COMECT The PROJECT. O’Sullivan Expects More to Follow As Demand and Regulatory Clarity Increase. “Adoption, Interoperability and Regulatory Alignment Will Take Time,” He Said. “However, Swift is Clearly Positioning Itself to Play a Meaningful Role in Shaping The Evolving Stablecoin and Tokenized Asset Ecosystem.”
Swift’s Platform Could Also “Materially Lower” Technical Barriers and Integration Costs for Financial Institutions that Want to Embed Stablecoins Into, Operations, Said Dav at coinbase.
O’Sullivan Noted that Platform Could Bring “Some Standardization to The Global Stablecoin Ecosystom,” Thought Fragmentation Will Likely Persist. “EXISTING PRIVATE STABLECOINS, CBDCS and Regional Solutions May Continue to Operate in PARALLEL,” HE SAID.
Years in the MakingDuong Descripted Swift’s Initiative As A “Watershed Moment” for Both Crypto and Traditional Finance, But Reminded that It Has Been Years in the Making. The Company have been experimenting with Distributed Ledger Technology Since 2017, Duong SAID, INCLUDING CONDUCTING PILOT PROjects with TESTS WITH CBDCS. Developing Its Own Shared Ledger Platform Appears to be the Next Stage in that Long-Running Transition, Duong Said.
Still, not everyone May See Swift As A Neutral Player. ITS ROLE IN ENFORCING SANCOUNTS HAS LED TO DISTRUST IN COUNTRIES WHERE BANKS WERE CUT OF OFF FROM The NETWORK, ACHSON SAID.
“IT’S NOT CLEAR THAT ITS OFFERING WOURTING The PAYMENT SYSTEMS FRAGMENTATION, Given Global DistRust Following Swift’s Role in Enforcing Us and Eu Sanctions,” She Argued.
Even SO, Swift’s Decision Underscores That Lines Between Traditional and Blockchain Finance Are IncreASINGly GETTING INTERTWINED AND The World’s Largest Financial relevant.
Nydig Noted that delay in reporting is notable, Given USD1’s Growing Profile and $ 2.7 Billion in Supple, and May Be a Concern for Investors.
- World Liberty Financial’s USD1 Stablecoin Has Fallen Begind on Publishing MONTHLY ATESTATION REPORTS, with The MOST REPORT AVAILBLE BEING JULY, NYDIG SAID.
- The Delay in Reporting Is Notable Given USD1’s Growing Profile and $ 2.7 Billion in Supple, and May Be a Concern for Investors.
- USD1’s Structure May Also Be Impacted by the Incoming Genius Act, Who Cold Limit Stablecoin Issuance to Subsidiaries of Regulated Banks or State Technologies to make structural changes to comply.
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