Societe Generale-FORGE, Swift Test Hybrid Tokenized Bond Settlement Model

TLDR

• Societe Generale-FORGE and Swift successfully completed a pilot for tokenized bond settlement using both fiat and stablecoins.
• The pilot demonstrated end-to-end settlement flows, including issuance, delivery-versus-payment, coupon payments, and redemption.
• EUR CoinVertible, a MiCA-compliant stablecoin, played a central role in the settlement process, ensuring regulatory compliance.
• Swift’s infrastructure provided seamless orchestration and interoperability across multiple platforms and financial systems.
• The pilot explored hybrid settlement models, combining fiat currencies with stablecoins for efficient capital market operations.

Societe Generale-FORGE and Swift completed a pilot that settled tokenized bonds using both fiat and digital currencies; the pilot featured the MiCA-compliant EUR CoinVertible and highlighted hybrid settlement models, which involved coordinated delivery-versus-payment, coupon payments, and bond redemptions, demonstrating real-world interoperability and regulatory compliance.

EUR CoinVertible Powers End-to-End Bond Settlement

Societe Generale-FORGE executed a pilot project with Swift involving the EUR CoinVertible stablecoin. The test focused on issuing and settling tokenized bonds.

It included complete settlement flows, such as issuance, delivery-versus-payment, coupon payments, and redemption. These actions occurred within Swift’s existing infrastructure.

The EUR CoinVertible functioned as the central settlement asset in this project. It is fully compliant with MiCA regulations.

Swift supported the operation by providing a unified orchestration layer. This layer ensured messaging compatibility and seamless execution across systems.

The firms executed all transactions using ISO 20022 messaging standards. This reinforced the compatibility of blockchain with traditional settlement systems.

USDCV Expands Regulated Stablecoin Use Cases

Societe Generale-FORGE introduced the USD CoinVertible (USDCV) in September through a partnership with Bullish Europe GmbH. Bullish is a BaFin-regulated provider of digital asset services.

This addition complements EUR CoinVertible and widens the options for blockchain-based settlements. It allows issuers to choose between euro and dollar-denominated settlements.

SG-FORGE and Bullish Europe aim to create a bridge between traditional finance and tokenized assets. They believe that dual-stablecoin availability accelerates adoption.

The two stablecoins offer flexibility for capital markets. Both options meet strict compliance standards and integrate with established platforms.

The project shows the role of compliant stablecoins in regulated markets. Swift’s coordination enabled interoperability without disrupting current systems.

This pilot supports future models where fiat and stablecoins operate side-by-side. These models cater to institutional needs and regulatory frameworks.

SG-FORGE continues to explore use cases beyond bond settlements. Its stablecoins are positioned as reliable payment rails in blockchain finance.

Swift Supports Real-Time Cross-Platform Settlement

Swift served as the messaging and orchestration layer for this initiative. It enabled synchronized communication between platforms and ensured regulatory alignment.

The pilot followed ISO 20022 standards to maintain consistency. It allowed traditional systems to process tokenized assets without overhauls.

Swift’s infrastructure connected settlement flows while maintaining compliance. The project highlighted practical cross-platform and cross-asset settlement.

The experiment aligns with the European Central Bank’s recent trials. These explore wholesale CBDCs and new payment technologies.

The collaboration with SG-FORGE extended previous Swift work with more than 30 global banks. It aimed at enabling 24/7 cross-border payments.

The hybrid model used in the pilot showed that both fiat and stablecoins could work together. This may support future settlement solutions.

The post Societe Generale-FORGE, Swift Test Hybrid Tokenized Bond Settlement Model appeared first on CoinCentral.