SWIFT’s second round of sandbox connector tests for CBDC and beyond deemed a resounding success

SWIFT, the Society for Worldwide Interbank Financial Telecommunication, has released the results of the second phase of sandbox testing for its CBDC interlinking solution called a connector. The project explored four use cases, including digital trading with instantaneous settlement using smart contracts, tokenization platforms for atomic delivery versus payment, and connecting existing foreign exchange infrastructures using CBDC in collaboration with CLS Group. The fourth use case focused on reducing liquidity fragmentation across platforms. R3’s Corda, Hyperledger Fabric, and Besu blockchains were used to demonstrate the connector’s interoperability. SWIFT plans to develop the beta version of the connector, focusing on smart contract implementation, token locking and releasing, and data preservation. Over 125 users, including major banks and central banks, participated in the sandbox experiments. SWIFT also highlighted the importance of interconnectivity with traditional financial solutions.