Swift and SG-FORGE Demonstrate Stablecoin Use in Tokenized Bond Settlement

The initiative showed that complex digital asset transactions, such as the issuance and settlement of tokenized bonds can be coordinated across blockchain platforms and legacy payment systems in a single, seamless process. The trial was conducted in collaboration with financial institutions including BNP Paribas Securities Services and Intesa Sanpaolo, which acted as custodians and paying agents.

At the heart of the test was Swift’s role as an orchestrator. Rather than replacing existing systems, Swift coordinated settlement flows and messaging across multiple platforms, allowing tokenized assets and traditional payments to interact without requiring financial institutions to overhaul their core infrastructure. This approach reflects a growing belief among banks that digital assets must integrate with existing rails, not operate in isolation, if they are to gain broad institutional acceptance.

The trial covered the full lifecycle of a tokenized bond, including issuance, delivery-versus-payment settlement, coupon payments, and redemption. Transactions were settled using a combination of traditional fiat currency and SG-FORGE’s euro-denominated stablecoin, EUR CoinVertible (EURCV), which has been designed to comply with Europe’s Markets in Crypto-Assets (MiCA) regulatory framework.

For Swift, the exercise was about proving that digital assets can operate at scale without fragmenting global financial markets. The company has long argued that interoperability, rather than the dominance of any single blockchain, will be essential to the future of digital finance. By showing that tokenized assets can be managed using familiar messaging standards such as ISO 20022, Swift is positioning itself as a bridge between emerging blockchain networks and the existing financial system.

SG-FORGE, meanwhile, contributed its open-source Compliance Architecture for Security Tokens (CAST) framework, which enables digital securities to be issued and managed in line with regulatory and operational requirements. The firm said the trial demonstrated that regulated digital assets can benefit from the same levels of automation, security, and reliability that market participants expect from traditional capital markets infrastructure.

Interoperability has become one of the most pressing challenges in the digital asset space. As banks and financial institutions experiment with tokenization, they are confronted with a rapidly expanding landscape of blockchains, settlement systems, and digital currencies. Without a common layer to connect these systems, liquidity risks becoming fragmented and operational complexity increases.

By coordinating transactions across blockchain platforms and fiat payment systems, Swift and SG-FORGE are addressing this problem head-on. The ability to settle tokenized assets using both traditional money and regulated stablecoins could make it easier for institutions to adopt digital instruments without introducing new settlement risks or compliance gaps.

The trial also builds on Swift’s broader digital finance strategy. In recent years, the company has made clear that it intends to go beyond messaging and play a more active role in enabling real-time, blockchain-enabled financial services. In 2025, Swift announced plans to develop a blockchain-based shared ledger designed to support 24/7 cross-border payments, working with dozens of global banks.

That shared ledger initiative aims to provide a common execution layer where transactions can be recorded, validated, and settled in real time. The interoperability trial with SG-FORGE can be seen as a practical extension of that vision, demonstrating how digital assets could operate within a unified global framework rather than being confined to isolated pilot projects.

The collaboration reinforces its position as a key player in Europe’s regulated digital asset ecosystem. The subsidiary has been active in deploying both euro and dollar-denominated stablecoins and supporting tokenization initiatives for institutional clients. Its focus on compliance and integration with existing financial systems reflects a broader shift in the industry, where innovation is increasingly driven by regulation-friendly design rather than experimentation alone.

Market participants have welcomed the trial as an encouraging signal that tokenization is moving beyond theory and into practical application. By showing that digital assets can be settled using trusted infrastructure and familiar processes, the initiative helps reduce some of the uncertainty that has slowed institutional adoption.

The ability to move assets seamlessly between traditional and blockchain-based systems is emerging as a defining feature of modern finance. The Swift and SG-FORGE trial suggests that, rather than replacing existing infrastructure, the next phase of digital finance will be built by connecting it, one interoperable link at a time.