What Did SWIFT and Societe Generale Test?

Global bank messaging network SWIFT has completed a test involving Societe Generale’s euro-pegged stablecoin as part of a joint effort to connect traditional financial infrastructure with blockchain-based assets. The test focused on the exchange and settlement of tokenized bonds using both fiat currency and onchain assets. Societe Generale’s digital asset unit, SG-Forge, said the project successfully executed several core market functions, including issuance, delivery-versus-payment settlement, coupon payments, and bond redemption. Transactions were carried out using EUR CoinVertible (EURCV), the euro-denominated stablecoin the bank launched on Ethereum in 2023. "This initiative showed that tokenized bonds can leverage existing payment infrastructures, enabling financial institutions and corporates to benefit from faster settlements and secure, compliant operational processes through the integration of ISO 20022 standards," SG-Forge said.

Investor Takeaway

SWIFT testing a euro stablecoin for real bond settlement suggests tokenized assets are moving closer to existing banking rails rather than replacing them.

Why Is EURCV Central to the Test?

The collaboration revolved around EURCV, SG-Forge’s euro-backed stablecoin, which the bank described as the first onchain settlement asset compliant with Europe’s Markets in Crypto-Assets (MiCA) framework and “natively compatible with Swift’s interoperability capabilities.” As part of the project, SG-Forge also supplied its open-source Compliance Architecture for Security Tokens (CAST), which defines how tokenized securities and settlement assets interact within regulated environments. CAST includes standardized components for issuing security tokens and settling them using EURCV. By using a stablecoin structured to meet MiCA requirements, the test addressed one of the main barriers facing tokenized finance in Europe: how to move onchain assets while staying within regulatory boundaries that govern payments, securities, and reporting.

How Does This Fit Into SWIFT’s Tokenization Strategy?

The test builds on SWIFT’s broader push to integrate blockchain technology into its core infrastructure. In September 2025, the messaging network said it planned to add a blockchain-based ledger to its technology stack, targeting real-time, 24/7 cross-border settlement. SG-Forge is one of at least 30 financial institutions working with SWIFT on that initiative. The project began with a conceptual prototype developed with Ethereum software firm Consensys and is designed to create a shared transaction log between banks. According to SWIFT, the system will record transaction sequences, validate transfers, and apply rules through smart contracts. “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,” said Thomas Dugauquier, SWIFT’s tokenized assets product lead. “It’s about creating a bridge between existing finance and emerging technologies.”

Investor Takeaway

SWIFT’s approach points to a future where banks use blockchain as an internal coordination layer, not a parallel payment system.

What Problem Is This Attempting to Solve?

Tokenized bonds and other onchain securities have struggled to scale because payments and securities settlement often sit on different systems. Even when assets are tokenized, cash legs of transactions still rely on legacy rails that operate on limited hours and delayed settlement cycles. By linking ISO 20022 payment messaging with onchain settlement assets, the SWIFT–SG-Forge test explored whether tokenized securities can settle using familiar bank infrastructure without fragmenting liquidity or compliance processes. The use of a euro stablecoin designed for regulated environments addresses concerns around settlement finality, auditability, and legal clarity. The project also reflects a shift in how large financial institutions approach blockchain adoption. Rather than bypassing existing systems, they are testing ways to extend current standards into tokenized environments, reducing the need for banks and corporates to overhaul their operations.

What Comes Next?

SWIFT and SG-Forge have not disclosed which blockchain networks were used beyond confirming the involvement of tokenized assets and EURCV. Cointelegraph said it reached out to both parties for further technical details but had not received a response at the time of publication. The test does not mean immediate production deployment, but it adds to a growing body of pilots showing how tokenized securities, stablecoins, and bank messaging standards could converge. As European regulation around crypto assets comes into force, projects that align with MiCA are likely to gain attention from institutions looking for compliant ways to experiment with onchain settlement.