SWIFT Tests Tokenized Bond Settlement With Societe Generale’s EURCV Stablecoin

Societe Generale has completed a blockchain settlement test with SWIFT, showing that tokenized bonds can move smoothly between blockchain networks and traditional financial systems.

The pilot suggests that regulated stablecoins and existing payment systems can work together, rather than compete.

The test was run by SG-FORGE, the bank’s digital asset arm, using SWIFT’s network to link blockchain platforms with conventional payment rails.

Key Data Points

• SG-FORGE and Swift tested tokenized bond settlement using the MiCA-compliant, euro-backed stablecoin EURCV.
• The pilot covered the full bond lifecycle, including issuance, delivery-versus-payment settlement, coupon payments, and redemption.
• Swift coordinated blockchain activity alongside existing payment infrastructure.
• Swift announced plans in September last year to develop a shared blockchain ledger with more than 30 global banks.

Stablecoin as a Bridge Between Systems

At the center of the pilot was EURCV, a euro-denominated stablecoin issued by SG-FORGE. The bank said the token complies with European regulatory requirements while remaining interoperable with existing financial systems.

Rather than replacing current payment rails, EURCV functioned as a bridge. In practice, it enabled blockchain assets to interact with traditional infrastructure, allowing transactions to move across both environments without disrupting established processes.

Testing the Full Bond Lifecycle

Using this framework, SG-FORGE tested multiple stages of a bond’s lifecycle. These included issuance and delivery-versus-payment settlement, followed by coupon payments and final redemption.

According to the bank, executing all of these steps within a single setup demonstrates that tokenized bonds can replicate the operational features of conventional securities while benefiting from blockchain-based settlement.

While blockchain settlement is often presented as an alternative to Swift, this trial took a different approach. Instead, Societe Generale emphasized interoperability over replacement.

By combining blockchain technology with Swift messaging and ISO 20022 standards, the setup reduces settlement times while remaining aligned with existing banking workflows. This model enables institutions to adopt tokenization without significant changes to their infrastructure.

Swift’s Expanding Role in Digital Assets

From Swift’s perspective, the pilot demonstrated its ability to coordinate transactions across multiple platforms. In particular, its network handled communication between blockchains and traditional payment systems.

Thomas Dugauquier, who leads tokenized assets products at SWIFT, said interoperability will shape the next phase of capital markets. He added that proven coordination tools can help financial institutions scale digital asset adoption with greater confidence.

Part of a Broader Industry Effort

More broadly, the Societe Generale pilot is part of a wider series of digital asset initiatives led by Swift. Other projects involve UBS Asset Management and Chainlink, as well as collaborations with Citi, HSBC, and Ant International.

Additional trials include work with Northern Trust and the Reserve Bank of Australia to settle digital transactions through commercial bank accounts. Taken together, these efforts seek to link tokenized assets with bank-based money.

In September last year, Swift announced plans to work with more than 30 global banks on a shared blockchain ledger, initially targeting real-time, 24/7 cross-border payments.