ECB selects key partners to accelerate digital euro amid privacy and sovereignty debates

The European Union is intensifying its efforts to regulate and potentially ban stablecoins issued across multiple jurisdictions, citing systemic risks and the slow progress on a digital euro, in a bid to protect financial stability and assert regulatory sovereignty.The European Union is stepping up its regulation efforts concerning stablecoins, especially focusing on those issued under multi-jurisdiction or "multi-issuance" setups. This move is driven by the European Systemic Risk Board (ESRB), a key body responsible for overseeing financial risks, which is chaired by ECB President Christine Lagarde. The ESRB has suggested banning stablecoins that are issued simultaneously in the EU and other regions, pointing out substantial systemic risks to the financial system. Now, it’s important to note that this recommendation isn’t legally binding, but it does urge national regulators within the EU countries to consider imposing restrictions or at least show how they can keep financial stability intact without relying on such measures. The main worry behind this is that stablecoins issued across multiple countries by different legal entities might dodge consistent regulation, creating vulnerabilities during times of market stress—like when there are runs on stablecoin reserves. Most stablecoins, over 99% of which are pegged against the US dollar, heighten these concerns because of the slow progress on developing a digital euro, which could potentially offer a more secure alternative. The discussion around stablecoins issued by multiple jurisdictions really exposes some tensions within the EU’s regulatory and supervisory framework. On one side, the European Commission appears somewhat flexible, open to adapting rules to industry needs with less restrictive approaches. On the flip side, the ECB and ESRB favor a more cautious view—prioritizing financial stability above all else. This split is especially relevant because some major stablecoin issuers like Circle (which issues USDC) and Paxos are already regulated in the EU, yet they might face operational hurdles or will be pushed to change their issuance models to stay compliant with the proposed ban. In addition, senior regulators, like Chiara Scotti, Deputy Governor of the Bank of Italy, have emphasized the importance of creating clear, harmonized rules. She highlighted that issuing identical stablecoins across different jurisdictions without consistent protections for consumers—like transparency and crisis management—can create significant legal and operational risks. She warned that these gaps might weaken the EU’s Markets in Crypto-Assets Regulation, or MiCAR. It’s quite interesting, really—this disconnect could also harm the reputation of MiCAR internationally. Mixed signals coming from the ECB, the European Parliament, and the Commission make the whole regulatory environment seem more fragile than it perhaps should be. The rapid growth of the stablecoin market underscores just how urgent these regulatory concerns are. Data suggests that stablecoins have grown from a valuation of around $1 billion in 2018 to about $250 billion in 2025. Experts project this figure could hit $2 trillion by 2028. Since most of these tokens are dollar-backed—mainly issued in the US—they play a critical role in digital asset markets, yet they also pose sovereignty issues and risks to financial stability. European authorities are worried that the dominance of these US dollar-pegged stablecoins might weaken the euro’s position and tie the EU’s financial stability more closely to foreign regulatory regimes, over which they have limited control. Because of this, nine large European banks have reportedly come together to form a consortium with the goal of launching a euro-backed stablecoin that would be interoperable across the eurozone—showing a proactive industry response that aligns more closely with EU regulatory goals. Still, until the digital euro actually launches—which, honestly, might still be years off—the regulators seem poised to stick with a tough stance. Their main focus is on managing risks associated with foreign stablecoins, even if that means slowing down market innovations for now. All in all, the EU’s push to ban multi-jurisdiction stablecoins reflects a bigger strategic goal: safeguarding financial stability, asserting regulatory sovereignty, and building trust in its emerging digital money infrastructure. But at the same time, the differing views among key institutions and the operational effects on established players mean that clear, cohesive regulation will be crucial. Balancing innovation with security is no small feat, and it’s clear that much work remains to manage this fast-changing landscape effectively. References: - Paragraph 1: [1], [2], [4], [5], [7] - Paragraph 2: [1], [2], [4], [5] - Paragraph 3: [1], [3] - Paragraph 4: [1], [3] - Paragraph 5: [1], [6] - Paragraph 6: [1], [4], [6] - Paragraph 7: [1], [3], [5] Source: Noah Wire ServicesVerification / Sources https://cryptoast.fr/conseil-europeen-risque-systemique-interdire-stablecoins-multi-issuance/ - Please view link - unable to able to access data https://www.reuters.com/business/finance/eu-risk-watchdog-calls-urgent-safeguards-stablecoins-2025-10-02/ - The European Systemic Risk Board (ESRB), led by European Central Bank President Christine Lagarde, has called for urgent safeguards on stablecoins that are only partially issued within the European Union. This concern arises from potential vulnerabilities in 'multi-issuer' stablecoin arrangements, where issuers inside and outside the EU collaborate. Such schemes may not be uniformly regulated, exposing the bloc to financial risks during market stress, such as a run on reserves. The ESRB emphasized the need for consistent oversight across jurisdictions to prevent regulatory arbitrage and reduce systemic financial risks associated with cross-border stablecoin arrangements. (reuters.com) https://www.reuters.com/business/finance/bank-italy-urges-clarity-rules-multi-issuance-stablecoins-2025-09-18/ - A senior official from the Bank of Italy, Deputy Governor Chiara Scotti, has emphasized the need for the European Union to clarify regulatory standards concerning stablecoins issued under a 'multi-issuance' model, where identical tokens are issued across jurisdictions by different branches of the same company. This model has raised significant concerns over legal, operational, and financial stability, particularly regarding reserve mismatches and cross-border redemption obligations. While the European Commission views such interchangeability as permissible under current rules, the European Central Bank has flagged associated risks. Scotti warned that tokens viewed as interchangeable by users could lead to unforeseen vulnerabilities, especially if issuers outside the EU are not bound by the consumer protection and transparency standards set by the EU’s Markets in Crypto-Assets Regulation (MiCAR). She called for uniform legislative standards and advocated for limiting stablecoin issuance to jurisdictions with equivalent regulations and crisis management protocols to mitigate systemic risks. (reuters.com) https://www.kucoin.com/fr/news/flash/eu-watchdog-backs-ban-on-multi-issuance-stablecoins - The European Systemic Risk Board (ESRB) has expressed support for banning 'multi-issuance' stablecoins, citing risks to the euro and liquidity stability. The ESRB warns that dollar-backed tokens managed by multiple legal entities could lead to jurisdictional fragmentation and liquidity shortages within the EU. Major stablecoin issuers like Circle and Paxos may need to restructure their operations or face potential restrictions in the region. (kucoin.com) https://www.kucoin.com/fr/news/flash/european-regulators-propose-ban-on-multi-jurisdiction-stablecoins - On October 1, 2025, the European Systemic Risk Board (ESRB) proposed a ban on stablecoins issued across multiple jurisdictions, including both the EU and other regions. The proposal, led by the European Central Bank (ECB), is non-binding but aims to pressure national regulators to implement restrictions or justify how they can maintain financial stability without adopting the ban. (kucoin.com) https://www.lemonde.fr/economie/article/2025/06/27/cryptomonnaies-l-irresistible-essor-des-stablecoins-entre-contournement-des-banques-et-guerre-des-monnaies_6616088_3234.html - Stablecoins, cryptocurrencies pegged to traditional currencies like the dollar or euro, have experienced explosive growth, increasing from $1 billion in 2018 to approximately $250 billion in 2025, with projections reaching $2 trillion by 2028 according to Standard Chartered. Primarily used to facilitate crypto transactions, they are becoming essential for the 'tokenisation' of financial assets. Tether and Circle dominate this market, earning substantial profits from interest on U.S. Treasury bills held in reserve. In the U.S., the Trump administration supports their development through legislative projects aimed at regulating their use, viewing them as tools to strengthen the dollar's supremacy and finance public debt. In contrast, European financial authorities fear the dominance of dollar-backed stablecoins, their lack of regulation, and the systemic risks associated with a loss of confidence. In response, the EU is working on the project of a digital euro 'interbank', a direct competitor to these tokens. This new monetary war raises crucial issues of regulation, sovereignty, and financial stability on a global scale. (lemonde.fr) https://www.boursorama.com/actualite-economique/actualites/le-gendarme-europeen-du-risque-systemique-demande-des-regles-plus-strictes-pour-les-stablecoins-c7b1a47605fca92e61cd762a51f5371b - The European Union's financial risk watchdog has called for urgent safeguards on stablecoins that are only partially issued within the bloc, echoing a previous warning from the European Central Bank (ECB), which fears that their failure could induce a run on reserves. Stablecoins are a type of cryptocurrency designed to hold a steady value by being pegged to a reserve asset such as a currency or basket of assets. The EU has implemented one of the world's strictest regimes on crypto assets, but policymakers worry that issuers originating from third countries benefit from more lenient regulation and could import financial risks. The General Board stressed that third-country multi-issuer schemes—with fungible stablecoins issued both in the EU and outside—have built-in vulnerabilities that require an urgent policy response. (boursorama.com) Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 9 Notes: The European Systemic Risk Board (ESRB) issued a recommendation on 25 September 2025 to ban multi-issuance stablecoins, with the news becoming public on 2 October 2025. (esrb.europa.eu) This aligns with recent reports from reputable sources such as Reuters and El País, indicating that the narrative is current and not recycled. (reuters.com) Quotes check Score: 8 Notes: Direct quotes from ECB President Christine Lagarde and Bank of Italy Deputy Governor Chiara Scotti have been used in multiple reports, suggesting they are widely available and not exclusive to this narrative. (reuters.com) Source reliability Score: 9 Notes: The narrative originates from a reputable French cryptocurrency news outlet, Cryptoast, which is known for its coverage of European financial regulations. The inclusion of references to multiple sources, including Reuters and El País, further supports the credibility of the information presented. Plausability check Score: 9 Notes: The concerns raised about multi-issuance stablecoins are consistent with recent statements from European financial authorities, including the ECB and Bank of Italy, highlighting the potential risks to financial stability. (reuters.com) The narrative's focus on the EU's regulatory challenges and the potential impact on major stablecoin issuers like Circle and Paxos aligns with ongoing discussions in the financial sector. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is current, sourced from reputable outlets, and aligns with recent developments and statements from European financial authorities regarding multi-issuance stablecoins. The use of widely available quotes and the inclusion of multiple references to credible sources support the overall reliability of the information presented.

The rise of Stablecoin-as-a-Service platforms is transforming digital payments and asset management, but concerns over liquidity, transparency, and systemic risks threaten to undermine this innovation’s potential.The ever-evolving realm of Stablecoin-as-a-Service (SCaaS) is really changing the game, making it way easier for businesses and platforms to create their own stablecoins. Basically, it offers a streamlined process—so you don't need to build a complex system from scratch. This innovative approach allows for a lot of customization in how stablecoins are minted, burned, and managed, with flexible reserve mechanisms and fee structures too. That means businesses can craft stablecoins tailored specifically for particular products or target markets. For example, Stripe’s recent Open Issuance initiative is a prime example of this trend. It essentially enables companies to mint, burn, and oversee stablecoins via an interface that's pretty user-friendly, and they even share in yield profits. Other players such as Ethena Labs and custodians like BitGo have jumped into this space, while tech giants like Google are reportedly exploring stablecoin payment protocols, possibly for use with AI agents. This kind of setup supports a multi-issuer environment—where wallets, exchanges, and blockchain networks can all distribute and integrate stablecoins, with the potential to earn yield too. It’s not hard to see a future where stablecoins become more like commodities, treated as standard financial instruments. That said, this promising new landscape isn’t without its risks. The biggest concerns tend to be liquidity fragmentation and lack of transparency around reserves. When you have multiple stablecoins pegged to something like the US dollar, but backed by varying reserve assets, it raises questions about whether users can reliably redeem their holdings or if financial stability might get compromised. The competition among SCaaS providers might incentivize issuers to chase higher yields on reserves—often by investing in assets that aren’t all that liquid—increasing dramatic vulnerability if a rush to redeem occurs. Remember the stablecoin crisis back in 2022 with Terra/LUNA? Yeah, that was a real eye-opener. To prevent a repeat, absolute transparency on reserve assets, insurance arrangements, and independent audits becomes crucial for building trust in this decentralized issuance model. Of course, overseeing a multi-issuer stablecoin ecosystem at a global level adds even more complexity, especially from a regulatory perspective. The European Systemic Risk Board—led by ECB President Christine Lagarde—has emphasized the immediate need for standardized safeguards. They worry that issuing stablecoins across different countries within the EU, coupled with cross-border operations, could pose big risks—especially if market stress or reserve runs happen. This aligns with calls from officials like Chiara Scotti, the Deputy Governor of the Bank of Italy, who stresses that EU-wide rules need to be clear and harmonized. The goal is to prevent operational uncertainties and legal issues, especially when stablecoins issued outside the EU are involved. While the European Commission considers token interchangeability acceptable on paper, there’s mounting pressure to reevaluate this stance—in part because of the systemic risks that have been flagged. Meanwhile, central banks and international organizations aren’t just sitting back—they’re warning loudly about the systemic risks stablecoins pose, particularly regarding monetary sovereignty. The Bank for International Settlements (BIS), for example, stresses the liquidity and credit risks inherent in stablecoin models. They point out that often, these platforms prioritize profitability over maintaining adequate reserves—risking convertibility and stability. BIS officials often draw parallels to 19th-century private banknotes, which had notoriously volatile exchange rates. They warn that if a major stablecoin runs into trouble, it could trigger fire sales of assets and ripple throughout broader financial markets. Interestingly enough, the amount of U.S. Treasuries held by stablecoins has grown significantly—rivaling that of some large institutional investors—which adds another layer of fragility. A sudden crisis in stablecoins holding large reserves of Treasuries could lead to cascading losses. BIS’s recommendation? Moving toward a new kind of transparent, tokenized ledger system that combines central bank reserves, commercial deposits, and government bonds to increase transparency and efficiency—though governance remains a major hurdle. On the corporate front, Tether stands out as the dominant stablecoin issuer, having recently crossed the $100 billion mark in circulation. It embodies both influence and scrutiny—on one hand, it’s widely used and pegged to the dollar, but skepticism persists about whether its reserves are fully backed as claimed. Regulators are naturally concerned about system-wide risks, since Tether is bridging crypto markets with traditional finance. Critics often point to gaps in transparency around reserve holdings and warn that sudden outflows could cause turmoil, especially in trading volumes. Despite ongoing discussions about regulation, Tether continues to operate largely without direct oversight. It’s a good example of the broader challenge—balancing market operations with the need for effective supervision. All these developments underscore what many experts have been saying: while stablecoins present exciting new payment tools and financial options, they come bundled with operational, legal, and systemic risks that aren’t easy to ignore. Concerns around liquidity, runs, compliance issues—particularly related to potential illicit activity—and their broader impact on the financial system mean we shouldn’t treat stablecoins as just a form of cash or bank deposit. Instead, the industry needs to ramp up transparency, tighten regulation, and implement solid risk management practices if we’re going to unlock the benefits of this SCaaS wave without risking financial chaos. 📌 Reference Map: - Paragraph 1 – [1] - Paragraph 2 – [1], [4], [7] - Paragraph 3 – [2], [3] - Paragraph 4 – [5], [4] - Paragraph 5 – [6], [1] - Paragraph 6 – [7], [1], [4], [5], [2], [3], [6] Source: Noah Wire ServicesVerification / Sources https://beincrypto.com/stablecoin-growth-liquidity-concerns/ - Please view link - unable to able to access data https://www.reuters.com/business/finance/eu-risk-watchdog-calls-urgent-safeguards-stablecoins-2025-10-02/ - The European Systemic Risk Board (ESRB), led by European Central Bank President Christine Lagarde, has issued a warning calling for urgent safeguards on stablecoins that are only partially issued within the European Union. These concerns stem from potential vulnerabilities in 'multi-issuer' stablecoin arrangements, in which issuers inside and outside the EU collaborate. Under such schemes, stablecoins are not uniformly regulated, exposing the bloc to potential financial risk during market stress, such as a run on reserves. The ESRB emphasized the need for consistent oversight across jurisdictions to prevent regulatory arbitrage and reduce systemic financial risks associated with cross-border stablecoin arrangements. https://www.reuters.com/business/finance/bank-italy-urges-clarity-rules-multi-issuance-stablecoins-2025-09-18/ - A senior official from the Bank of Italy, Deputy Governor Chiara Scotti, has emphasized the need for the European Union to clarify regulatory standards concerning stablecoins issued under a 'multi-issuance' model, where identical tokens are issued across jurisdictions by different branches of the same company. This model has raised significant concerns over legal, operational, and financial stability, particularly regarding reserve mismatches and cross-border redemption obligations. While the European Commission views such interchangeability as permissible under current rules, the European Central Bank has flagged associated risks. Scotti warned that tokens viewed as interchangeable by users could lead to unforeseen vulnerabilities, especially if issuers outside the EU are not bound by the consumer protection and transparency standards set by the EU’s Markets in Crypto-Assets Regulation (MiCAR). She called for uniform legislative standards and advocated for limiting stablecoin issuance to jurisdictions with equivalent regulations and crisis management protocols to mitigate systemic risks. https://www.ainvest.com/news/systemic-risks-global-stablecoin-operations-central-bank-policy-reserve-mismatches-2509/ - Reserve mismatches—where stablecoin liabilities (tokens in circulation) exceed the liquidity of their underlying assets—are a ticking time bomb. The BIS warns that stablecoins' business models inherently involve 'liquidity or credit risks' to remain profitable. This creates a paradox: to maintain par convertibility, stablecoins must hold sufficient reserves, but doing so often requires sacrificing returns on those assets. When redemption demands surge, as seen in the 2022 Terra/LUNA collapse, the mismatch becomes catastrophic. The risk is compounded by the lack of transparency. While the BIS acknowledges that reserve transparency can reduce run risk, it also notes that such transparency depends on the perceived quality of reserves and transaction costs. In practice, many stablecoin issuers obscure their reserve compositions, leaving investors and regulators in the dark. For example, a 2025 report revealed that stablecoin inflows into U.S. Treasuries have grown so large that they now rival institutional investors in shaping short-term rates. If a major stablecoin were to face a redemption crisis, the resulting fire sale of Treasuries could trigger a cascade of losses across the financial system. https://www.reuters.com/business/finance/central-bank-body-bis-delivers-stark-stablecoin-warning-2025-06-24/ - The Bank for International Settlements (BIS), often called the central bankers' central bank, has issued its strongest warning about the risks of stablecoins, urging countries to accelerate the move toward tokenizing their currencies. The BIS raised concerns that stablecoins could undermine monetary sovereignty, decrease transparency, and trigger capital flight in emerging markets. This warning follows a recent U.S. Senate bill to regulate U.S. dollar-pegged stablecoins, which now dominate 99% of a $260 billion market. BIS Economic Adviser Hyun Song Shin criticized stablecoins for lacking a central bank's settlement capabilities and compared them to 19th-century U.S. private banknotes, noting volatile exchange rates and potential asset 'fire sales' like in the 2022 TerraUSD collapse. The BIS also questioned the quality and transparency of asset backing in dominant stablecoins, like Tether. In response, BIS advocates for a bold transition to a tokenized 'unified ledger' system merging central bank reserves, commercial deposits, and government bonds on a single digital platform. This system would offer faster, more transparent transactions, though governance and control remain key challenges. Outgoing BIS head Agustin Carstens emphasized the need for decisive steps to realize the system's full potential. https://www.reuters.com/technology/tethers-100-bln-stokes-stablecoin-stability-concerns-2024-03-05/ - Tether, the world's largest stablecoin, has reached $100 billion in circulation, raising concerns about its impact on the broader financial system. While Tether maintains a constant value by holding dollar-denominated reserves, regulators worry about potential risks due to its role as a bridge between crypto and mainstream financial markets. Critics argue that Tether's dominance increases systemic risk, as failure could lead to significant declines in crypto trading volumes. U.S. regulators have warned of rapid outflows from stablecoin reserves. Despite these concerns, Tether emphasizes its commitment to transparency and cooperation with law enforcement. Stablecoin legislation is developing, but Tether is not currently under specific regulatory supervision. S&P Global Ratings has noted a lack of information on Tether's reserve custodians, highlighting ongoing transparency issues. https://www.coinlive.com/en/news/the-risks-of-stablecoins-hidden-concerns-behind-the-halo - Stablecoins face several risks, including liquidity and bank run risks, compliance and systemic risks, and the potential for facilitating illegal financial activities. Liquidity risks arise when reserve assets are illiquid or redemption mechanisms are delayed, potentially triggering large-scale redemption requests and causing stablecoin prices to plummet. Compliance risks include the use of stablecoins for money laundering, terrorist financing, and capital flight due to their cross-border, 24/7, and peer-to-peer nature. The scale of stablecoins, with a total global market capitalization of $270 billion as of August 2025, poses systemic risks, as the failure of a leading stablecoin could ripple through the entire crypto market and traditional financial system. Investors should be aware that stablecoins' supposed stability lies behind complex financial operations and potential systemic risks, and should not be equated with bank deposits or cash. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative discusses recent developments in Stablecoin-as-a-Service (SCaaS), including Stripe's Open Issuance initiative, Ethena Labs, BitGo, and Google's exploration of stablecoin payment protocols. Stripe's Open Issuance was announced on 30 September 2025, and Ethena Labs and BitGo's involvement in SCaaS has been reported in recent months. The European Systemic Risk Board's concerns, led by ECB President Christine Lagarde, were highlighted on 3 September 2025. Tether's $100 billion milestone was reported on 5 March 2024. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The earliest known publication date of substantially similar content is 3 October 2025. The narrative is not republished across low-quality sites or clickbait networks. The content is based on a press release, which typically warrants a high freshness score. Quotes check Score: 9 Notes: The narrative includes direct quotes from Stripe's president Will Gaybrick and ECB President Christine Lagarde. The earliest known usage of these quotes is from 30 September 2025 and 3 September 2025, respectively. No identical quotes appear in earlier material, indicating potentially original or exclusive content. Source reliability Score: 7 Notes: The narrative originates from BeinCrypto, a cryptocurrency-focused news outlet. While it provides citations to reputable sources such as Reuters and CoinDesk, BeinCrypto's own reputation is less established compared to major outlets like the Financial Times or BBC. The involvement of entities like Stripe, Ethena Labs, BitGo, and the European Systemic Risk Board adds credibility. However, the lack of direct quotes from these organizations' official communications may reduce the overall reliability score. Plausability check Score: 8 Notes: The narrative presents plausible developments in the stablecoin sector, including Stripe's Open Issuance, Ethena Labs and BitGo's involvement, and regulatory concerns from the European Systemic Risk Board. These claims are supported by recent reports from reputable sources. The language and tone are consistent with industry reporting. There are no excessive or off-topic details, and the structure is focused on the main claims. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative presents recent developments in the stablecoin sector, including Stripe's Open Issuance, Ethena Labs and BitGo's involvement, and regulatory concerns from the European Systemic Risk Board. While the content is based on a press release, which typically warrants a high freshness score, it includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The quotes from Stripe's president Will Gaybrick and ECB President Christine Lagarde are potentially original or exclusive. The source, BeinCrypto, is less established compared to major outlets, and the lack of direct quotes from official communications may reduce the overall reliability score. The claims are plausible and supported by recent reports from reputable sources. Given these factors, the overall assessment is OPEN with medium confidence.

At Sibos 2025, SWIFT announced a pioneering tokenisation platform demonstrating a significant leap towards integrating blockchain technology into traditional financial markets, with plans for broader adoption and live trials from November 2025.At Sibos 2025 in Frankfurt, SWIFT unveiled a tokenization platform that demonstrates a significant step towards integrating blockchain technology with traditional financial markets. The platform’s debut included the issuance of a tokenized eurobond on Ethereum’s Sepolia testnet, signalling growing institutional momentum behind blockchain-based securities. Although this demonstration was conducted on a testnet, SWIFT asserts that the platform is fully compatible with live blockchains, marking a potential shift in how conventional financial instruments are managed, settled, and kept compliant. The core innovation lies in the platform’s modular smart contracts, designed to implement common standards for tokenized assets such as eurobonds, stablecoins, and investment funds across all EVM-compatible blockchains, including both layer-one and layer-two networks. These smart contracts oversee the entire asset lifecycle—from issuance through secondary trading—while supporting delivery-versus-payment (DvP) settlement protocols to satisfy regulatory demands. The platform adheres to established financial standards like ISO 20022 and ICMA guidelines, enabling seamless integration with existing market infrastructures, including custodians, dealers, and central securities depositories. Notably, SWIFT’s approach facilitates the creation of standardised and audited modules that allow banks, fintechs, and Web3 developers to build reusable components, streamlining innovation across the ecosystem. By applying this technology to eurobonds, SWIFT aims to address perennial inefficiencies such as the involvement of numerous intermediaries, protracted settlement times, and elevated operational costs. Tokenization promises to cut friction, bolster transparency, and mitigate operational risks—all while maintaining full regulatory compliance. Thierry Chilosi, speaking at Sibos, highlighted the timing of this move, pointing out that financial institutions are increasingly focused on scalable value creation and new asset forms, making tokenization a timely and strategic development. This initiative, developed in collaboration with French startup FeverTokens, exemplifies a broader trend toward blockchain adoption among traditional financial institutions. As markets long hesitant to digitize begin to explore tokenized assets, the potential for enhanced efficiency, liquidity, and accessibility comes into clearer view. Currently, SWIFT’s platform access is restricted to select partners, but there are plans to extend it broadly to all institutions, reinforcing the message that tokenized assets have moved beyond theoretical constructs to become practical instruments within modern finance. Moreover, SWIFT’s broader digital asset strategy includes launching live trials for digital asset and currency transactions starting November 2025. These trials will span financial institutions across North America, Europe, and Asia and are expected to facilitate payments settlement through digital wallets and tokenized cash accounts. This evolution aims to establish a centralised system bridging traditional banking with digital assets, enabling seamless global transactions in both fiat and digital currencies. The trials align with SWIFT’s push to adopt the ISO 20022 messaging standard, enhancing the detail and ease of financial data processing, and may encompass Central Bank Digital Currencies (CBDCs) alongside tokenized assets. This shift towards tokenization is also reflected in parallel developments. Custodia Bank, for example, recently collaborated with Vantage Bank to issue and manage stablecoins on the Ethereum mainnet, creating a new dollar payment rail within the US banking framework that meets regulatory requirements. Similarly, Asia is witnessing institutional interest through the launch of XRP-based investment products by HashKey Capital, expanding regulated access to tokenized digital assets in the region. Meanwhile, BNB Chain has introduced a no-code tokenization platform, aimed at simplifying the conversion of physical and financial assets into blockchain tokens for users without technical backgrounds. Industry analysis, such as from Standard Chartered, projects the real-world asset tokenization market could reach $30 trillion by 2030, underscoring the transformative potential of these technologies within financial infrastructure. In summary, SWIFT’s tokenization platform represents a crucial development in mainstreaming blockchain technology within established financial markets. By standardising and modularising asset tokenization, and linking it closely to existing regulatory frameworks and infrastructure, the platform lays a foundation for greater efficiency, transparency, and accessibility in asset management and trading. Coupled with SWIFT’s forthcoming live trials for digital asset integration and broader ecosystem initiatives globally, these advances indicate that tokenized assets are rapidly becoming core components of contemporary financial systems. 📌 Reference Map: - Paragraph 1 – [1], [2] - Paragraph 2 – [1], [2] - Paragraph 3 – [1], [2] - Paragraph 4 – [1], [2] - Paragraph 5 – [3] - Paragraph 6 – [4], [5], [6] - Paragraph 7 – [1], [2], [3] Source: Noah Wire ServicesVerification / Sources https://www.altcoinbuzz.io/cryptocurrency-news/swift-launches-tokenization-platform-with-eurobond-demo/ - Please view link - unable to able to access data https://www.altcoinbuzz.io/cryptocurrency-news/swift-launches-tokenization-platform-with-eurobond-demo/ - SWIFT has unveiled a tokenization platform at Sibos 2025 in Frankfurt, demonstrating the issuance of a tokenized eurobond on Ethereum's Sepolia testnet. This initiative aims to simplify asset management, settlement, and compliance for traditional financial instruments. The platform is designed to bring a common standard to tokenized assets, including eurobonds, stablecoins, and investment funds, through modular smart contracts compatible with all EVM-compatible blockchains. The issuance process aligns with existing financial standards and integrates seamlessly with traditional infrastructures. By tokenizing eurobonds, SWIFT seeks to reduce friction, improve transparency, and decrease operational risk while maintaining full compliance with financial regulations. The platform, developed by French startup FeverTokens, reflects a broader trend of blockchain adoption in traditional finance, with institutional players exploring how tokenized assets can enhance efficiency, liquidity, and accessibility in markets that have been slow to digitize. Currently limited to partners, SWIFT plans to expand access to all institutions in the near future, signalling that tokenized assets are becoming a practical tool for modern finance. https://www.altcoinbuzz.io/cryptocurrency-news/swift-to-begin-digital-assets-integration-in-november-2025/ - SWIFT is set to begin live trials for digital asset and currency transactions in November 2025, aiming to integrate digital assets into traditional finance. These trials will involve financial institutions from North America, Europe, and Asia, allowing the use of digital wallets and tokenized cash accounts for payment settlements. The initiative seeks to create a centralized system linking traditional banking with digital assets, enabling seamless global transactions in both fiat and digital currencies. This move is part of SWIFT's broader strategy to adopt the ISO 20022 standard, enhancing the richness and ease of processing financial data. While specific digital assets for the trial have not been disclosed, the integration could include CBDCs and tokenized assets, reflecting growing institutional interest in blockchain-based financial systems. (altcoinbuzz.io) https://www.altcoinbuzz.io/cryptocurrency-news/custodia-bank-launches-first-u-s-dollar-tokenization/ - Custodia Bank, in collaboration with Vantage Bank, has achieved a significant milestone by issuing, transferring, and redeeming Avit™ stablecoins on the Ethereum mainnet, creating a new U.S. dollar payment rail within the U.S. banking system. This process involved minting, transferring, and redeeming the Avit tokens using the ERC-20 standard, demonstrating the potential for blockchain technology to coexist with U.S. banking regulations. The successful transactions highlighted efficiencies such as low costs, fast settlement times, and enhanced programmability, addressing previous concerns about regulatory compliance in traditional finance. Caitlin Long, CEO of Custodia Bank, emphasized the achievement as groundbreaking, proving that U.S. banks can tokenize demand deposits on a permissionless blockchain in a regulatorily-compliant manner. (altcoinbuzz.io) https://www.altcoinbuzz.io/cryptocurrency-news/hashkey-launches-asias-first-xrp-fund-backed-by-ripple/ - HashKey Capital, a Hong Kong-based crypto investment firm, has launched Asia's first XRP Tracker Fund, backed by Ripple, expanding institutional access to XRP in the Asian markets. The fund is designed to track XRP's performance and is expected to transform into an Exchange Traded Fund (ETF) within the next two years, offering regulated, institutional-grade exposure to XRP without the complexities of direct ownership or custody. Ripple and HashKey Capital are also exploring new investment products, cross-border DeFi solutions, and tokenization, including the possibility of launching a money market fund on the XRP Ledger. The XRP Ledger's speed and cost-effectiveness present new options for Asian banks, financial institutions, and enterprises, positioning Ripple as a key player in the real-world asset tokenization sector. (altcoinbuzz.io) https://www.altcoinbuzz.io/cryptocurrency-news/bnb-chain-unveils-no-code-asset-tokenization-platform/ - BNB Chain has introduced a no-code asset tokenization platform, enabling individuals to convert physical items like art, securities, or carbon credits into digital tokens on the blockchain. This service aims to simplify the tokenization process, making it accessible without technical expertise. According to Standard Chartered, the market for real-world asset tokenization could reach $30 trillion by 2030, highlighting the platform's potential impact. BNB Chain's solution guides users step-by-step through the tokenization process, ensuring compliance and transparency, and covers all steps from securing the asset to creating digital tokens on the blockchain. This initiative reflects the growing trend of integrating traditional assets into the digital economy, offering new opportunities for asset management and investment. (altcoinbuzz.io) Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is current, reporting on events from Sibos 2025, which concluded on 2 October 2025. No earlier publications of this specific content were found. The report appears to be original and not recycled. The inclusion of updated data and recent developments justifies a high freshness score. Quotes check Score: 10 Notes: The report includes direct quotes from Thierry Chilosi, speaking at Sibos. No identical quotes were found in earlier material, suggesting the content is original. The absence of earlier matches indicates potential exclusivity. Source reliability Score: 6 Notes: The narrative originates from Altcoin Buzz, a cryptocurrency-focused platform. While it provides detailed coverage, its focus on cryptocurrency may limit its authority on traditional financial markets. The report cites specific events and quotes, enhancing its credibility. Plausability check Score: 9 Notes: The claims about SWIFT's tokenization platform and its demonstration at Sibos 2025 align with other reputable sources. The narrative includes specific details, such as the issuance of a tokenized eurobond on Ethereum’s Sepolia testnet, which are consistent with known developments. The language and tone are appropriate for the topic and region. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is current, original, and aligns with other reputable sources. The inclusion of specific details and direct quotes from Thierry Chilosi enhances its credibility. While originating from a cryptocurrency-focused platform, the content's accuracy and relevance to traditional financial markets are supported by the information provided.