Societe Generale has completed a tokenized bond settlement test with Swift, using both traditional cash and a regulated euro stablecoin to execute core capital markets operations. The transaction was carried out by the bank’s digital asset unit, SG-FORGE, and used its euro denominated stablecoin EUR CoinVertible, which is compliant with Europe’s Markets in Crypto Assets framework. The trial covered the full lifecycle of a bond transaction, including issuance, delivery versus payment settlement, coupon payments and redemption. Rather than positioning blockchain rails as a replacement for existing financial infrastructure, the initiative focused on interoperability, with Swift coordinating transactions across blockchain networks and established payment systems. The test highlights how stablecoins are increasingly being explored as settlement instruments within regulated capital markets rather than solely as crypto native payment tools.
The collaboration demonstrates how tokenized securities can integrate with current market standards while benefiting from faster and more automated settlement processes. By leveraging Swift’s messaging layer alongside blockchain based assets, financial institutions can align tokenized transactions with ISO 20022 messaging standards already widely used across global finance. This approach allows banks to experiment with onchain settlement without abandoning existing operational frameworks. For Societe Generale, the use of a MiCA compliant stablecoin is central to making tokenized finance viable within regulatory boundaries, particularly for institutional use cases that demand legal clarity and operational resilience. The trial suggests that stablecoins can function as neutral settlement assets that bridge traditional cash systems and distributed ledger technology in a controlled environment.
The test forms part of a broader industry effort led by Swift to explore digital asset and digital currency use cases with major global banks. Swift has been working with dozens of institutions on shared ledger and blockchain initiatives aimed at enabling real time, around the clock cross border settlement. Rather than competing with blockchain networks, Swift is positioning itself as an orchestration layer that connects multiple platforms and asset types. For capital markets, this model points toward a future where tokenized bonds and other digital securities can settle using either fiat money or regulated stablecoins, depending on the use case. The experiment underscores how stablecoins are moving deeper into market infrastructure, supporting tokenization and settlement efficiency rather than speculative trading activity.
