SWIFT Tests Euro Stablecoin for Tokenized Bond Settlements

SWIFT Tests Euro Stablecoin for Tokenized Bond Settlements

SG Forge has announced a new tokenized bonds and EUR-coinvertible stablecoin initiative, the company said in January 2026. The project combines digital bonds with a euro-linked stablecoin to support regulated digital finance products.

The tokenized bonds will be issued and managed on a public blockchain. They are designed to represent traditional debt instruments in a digital form. Investors holding the bonds will receive payments tied to the bonds’ terms, such as interest and maturity value. Smart contracts handle issuance and payments on the blockchain.

The stablecoin involved in the initiative is pegged to the euro. It is meant to provide a digital asset with a stable value relative to the euro currency. The peg is maintained by holding reserves or mechanisms that track the currency’s value. The stablecoin is convertible, allowing holders to exchange it for euros under set conditions.

SG Forge is positioning the project as a link between traditional financial assets and blockchain infrastructure. The company said the initiative may attract institutional and retail participants. The use of tokenized bonds aims to improve settlement times and transparency compared with legacy systems.

The tokenized bonds will use regulated frameworks where applicable. Issuers and platforms must comply with financial laws governing debt securities. SG Forge said legal and compliance teams worked to align the project with existing regulation in relevant jurisdictions.

The euro-linked stablecoin supports transactions and holdings in digital finance ecosystems. It is intended to operate on compatible blockchain networks that support smart contract functions. The stablecoin’s design includes mechanisms to maintain its peg to the euro, although details such as reserve structures or audits were not fully detailed in the announcement.

SG Forge’s initiative follows a trend of combining traditional finance models with blockchain based products. Tokenized bonds are gaining interest as an alternative to conventional bond issuance. Stablecoins pegged to major currencies are widely used in digital asset markets for trading, lending, and payments.

The use of blockchain allows bonds and stablecoins to be traded or transferred without intermediaries. Smart contracts automate key functions such as coupon payments and redemption at maturity. This reduces manual processing and can lower operational costs.

The project’s announcement did not include a launch date or list of initial bond offerings. SG Forge said it will release more details as the initiative progresses. The company aims to work with regulated partners to support issuance and market participation.

The euro convertible stablecoin is part of a broader effort to expand fiat-linked digital assets. It complements other stablecoins pegged to major currencies used in decentralized finance and institutional digital markets. The tokenized bonds and stablecoin represent continued development in blockchain-based financial infrastructure.

Source: https://cointelegraph.com/news/sg-forge-swift-tokenized-bonds-eur-coinvertible-stablecoin