In a new capital markets experiment, Swift and Societe Generale’s digital asset arm have tested tokenized bonds settlement using both cash and stablecoins.
Summary
Societe Generale and Swift connect tokenization with traditional rails
The cryptocurrency and stablecoin-focused arm of French bank Societe Generale (GLE), SG-FORGE, is collaborating with Swift to exchange and settle tokenized bonds using fiat money and digital currencies, the bank said on Thursday.
In this proof of concept, Swift acted as an orchestration layer between blockchain networks and existing payment systems while SG-FORGE handled issuance and settlement flows. Moreover, the setup preserved banks’ existing connectivity to Swift, limiting the need for new infrastructure.
EURCV stablecoin and MiCA compliance at the core of the trial
The transaction used SG-FORGE’s EURCV $1.1631 stablecoin, described by the bank as the first MiCA (Markets in Crypto Assets)-compliant stablecoin natively compatible with Swift. However, fiat cash legs were also supported, showing that both traditional and digital money can be used in a single workflow.
According to Societe Generale, this design allows financial institutions to experiment with digital assets while still operating within familiar Swift-based environments and regulatory frameworks. That said, the reliance on a fully regulated euro stablecoin is central to the model’s appeal for banks.
Key capital markets use cases validated
The demonstration showed the feasibility of several core market operations: issuance, delivery-versus-payment (DvP) settlement, coupon payments and redemption. Moreover, it provided a live test of how ISO 20022 messaging can support these token-based processes.
By integrating ISO 20022 standards, Societe Generale said tokenized bonds can plug into existing payment infrastructures. As a result, institutions may benefit from faster and more automated settlements without abandoning their current back-office systems.
Swift’s broader digital asset strategy
The trial forms part of a wider series of digital asset and digital currency use cases led by Swift and involving more than 30 global banks. In September last year, Swift announced a project with these institutions to develop a shared digital ledger based on blockchain.
That initiative initially targets real-time, 24/7 cross-border payments using a common infrastructure that can connect different bank systems. However, it also lays the groundwork for future multi-asset settlement, including tokenized securities and programmable money.
Collaboration instead of competition with blockchain rails
Blockchain technology and stablecoin settlement rails are often presented as alternatives to Swift and traditional correspondent banking. In this case, however, Societe Generale is exploring collaborative models that bridge existing infrastructures with new digital asset platforms.
As such, token-based securities can leverage the scale and reach of Swift while tapping the programmability of blockchain. Moreover, the bank argues that this hybrid model could accelerate institutional adoption by reducing integration complexity.
Interoperability as the future of capital markets
“This milestone demonstrates how collaboration and interoperability will shape the future of capital markets,” said Thomas Dugauquier, tokenized assets product lead at Swift. “By proving that Swift can orchestrate multi-platform tokenized asset transactions, we’re paving the way for our customers to adopt digital assets with confidence, and at scale.
“It’s about creating a bridge between existing finance and emerging technologies.” The statement highlights Swift’s ambition to serve as a neutral coordination layer across multiple blockchains and payment systems rather than being displaced by them.
Overall, the experiment confirms that regulated stablecoins like EURCV, combined with Swift’s orchestration and ISO 20022 integration, can support real-world issuance and settlement flows for token-based securities while preserving current banking connectivity.
