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

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

SWIFT said on March 25 that it discovered several applications for its central bank digital currency (CBDC) solution following a successful six-month test.
The company did not create its own CBDC but instead developed an interlinking solution for existing CBDCs — dubbed the SWIFT connector.
The company wrote:
“At the core of our solution is the DLT and smart contract layer, which maintains consistent records of transactions.”
SWIFT broadly described the platform as having applications in digital trade, securities, and foreign trade. It also noted that future versions of the platform could be expanded to areas beyond CBDCs, such as bank-led tokenized deposit networks.
Smart contracts for TradFi
Specific use cases include trade payments, foreign exchange, delivery versus payment (DvP), and liquidity-saving mechanisms.
SWIFT said its sandbox solution involves multiple digital ledger technology (DLT) networks. The company used Hyperledger Besu for the tokenization platform. It used R

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