Exploring the Strategic Move Towards Asset Tokenization by the Swiss National Bank

Asset Tokenization Over CBDCs

The Swiss National Bank (SNB) is at the forefront of integrating cutting-edge technology in the financial sector. At a recent summit in Basel, SNB Chairman Thomas Jordan unveiled the bank's strategic move towards asset tokenization.

Jordan outlined that the SNB assesses various methods to facilitate transactions using tokenized assets through central bank money. This approach aims to eliminate credit and liquidity risks and reinforces the stability of the monetary system.

Project Helvetia III

The SNB's project, Helvetia III, involves live pilots where banks utilize Swiss franc wholesale CBDC to settle transactions with tokenized bonds on the SIX Digital Exchange.

Chairman Jordan emphasized the essential role of settling transactions in central bank money for financial stability and highlighted the bank's pioneering role in leveraging blockchain technology.

Exploring Alternatives

Jordan discussed alternative settlement methods, including linking token platforms with the Swiss RTGS system and using privately issued token money. These methods address fragmentation issues in financial markets.