SG-FORGE and Swift: bridging TradFi and Web3 payments

Bridging legacy systems and crypto: SG-FORGE CEO Jean-Marc Stenger shares lessons from Swift trials on using MiCA stablecoins for seamless bond settlement.

For years, the financial industry has debated whether traditional finance and blockchain-based finance could truly coexist. But now the answer is no longer theoretical. It is operational.

When traditional and on-chain finance meet

SG-FORGE and Swift reached a major milestone by completing a live trial for the exchange and settlement of tokenized bonds using both fiat money and regulated digital currencies. The initiative demonstrated that established financial market infrastructures can interoperate with blockchain-based platforms without requiring institutions to abandon existing systems.

At the core of the project was the idea that blockchain does not need to replace traditional finance to deliver value but can extend it. Using Swift as a central orchestration layer, the full lifecycle of a digital bond was coordinated end to end (from issuance and delivery-versus-payment settlement to coupon payments and final redemption) across both traditional payment rails and blockchain networks.

SG-FORGE’s EUR CoinVertible, a MiCA-compliant euro-denominated stablecoin, played a key role in the trial. Designed to work optimally with Swift-enabled interoperability flows, EUR CoinVertible enabled regulated on-chain settlement while remaining aligned with existing financial messaging and compliance standards. The initiative also built on prior European Central Bank exploratory work involving SG-FORGE and Swift on interbank central bank digital currency use cases, positioning the project firmly within Europe’s regulated digital finance framework.

What was achieved?

This collaboration went beyond a conceptual pilot and provided a practical demonstration of how digital assets can operate within institutional market infrastructure. By completing all settlement flows through Swift, the project showed that tokenized bonds can leverage existing payment and messaging infrastructure rather than bypass it.

One of the most significant achievements was interoperability. The trial addressed the long-standing ‘digital island’ problem by enabling multiple blockchain platforms to communicate with one another and with traditional bank systems. Swift acted as the orchestration layer, coordinating transactions across different environments without requiring participating banks to overhaul their existing connectivity or core banking infrastructure.

Another key milestone was the use of a regulated stablecoin as a settlement asset. SG-FORGE’s EUR CoinVertible, designed to be MiCA-compliant, was used in the trial to enable regulated on-chain settlement through Swift-enabled interoperability flows. This demonstrated that compliant digital currencies can support institutional-grade settlement processes, offering an alternative to reliance on unregulated or offshore stablecoins.

The initiative also went beyond simple transfers, successfully handling complex bond events including delivery-versus-payment settlement, interest payments, and redemption using ISO 20022 messaging standards. Tested with participating banks, the project forms part of Swift’s broader digital asset strategy. In parallel, Swift has announced work with more than 30 global banks on developing a shared digital ledger aimed at enabling real-time, 24/7 cross-border payments and asset settlement.

Why this matters for financial institutions

One of the biggest concerns surrounding blockchain adoption has long been the fear of having to ‘replace’ existing infrastructure. This initiative directly challenges that assumption. It shows that modernisation can be additive rather than disruptive. Swift effectively becomes an orchestration and API layer for the blockchain world, allowing banks to connect to digital assets using systems they already trust, govern, and operate.

The risk of inaction, however, is real. As tokenized assets move closer to the mainstream, institutions that cannot issue, settle, or custody them risk disintermediation. Corporate and institutional clients seeking faster, cheaper, and more transparent capital market processes will increasingly gravitate toward banks that can support digital issuance and on-chain settlement. Those who cannot may find themselves sidelined, much like firms that underestimated the transition from analogue to digital markets.

The operational benefits are tangible. Traditional cross-border bond settlements typically take two to three days, tying up liquidity and increasing counterparty and settlement risk. Near-real-time, atomic delivery-versus-payment settlement frees capital, improves balance sheet efficiency, and reduces operational complexity. For banks under constant pressure to optimise capital, costs, and risk, this represents a structural improvement rather than a marginal gain.

Conclusions: from experimentation to industrialisation

The SG-FORGE and Swift collaboration signals a shift from blockchain experimentation to industrial deployment, showing that legal, regulatory, and technical elements can advance together. Looking toward 2026, it points to a Web3.0 financial model where traditional and on-chain finance coexist. Anchoring tokenized assets within trusted infrastructures like Swift allows banks to adopt digital assets at scale while maintaining security, compliance, and governance standards. The bridge has been built; crossing it is now a matter of strategic relevance in a tokenized financial system.

This editorial is part of the Global Stablecoins Report 2026. Explore how stablecoins are moving from hype to utility for banks, merchants, and fintechs.

About the author

 

Jean-Marc Stenger is CEO of SG-FORGE, a fully integrated subsidiary of Societe Generale providing end-to-end solutions for crypto assets issuance, trading, and custody, underpinned by bank-grade security and regulatory compliance. SG-FORGE is the issuer of CoinVertible, a European MiCA-compliant stablecoin.

Jean-Marc is a member of the consultative commission of the French Autorité des Marchés Financiers (AMF).

 

About SG-FORGE

Societe Generale-FORGE is an integrated subsidiary of Societe Generale Group licensed as an investment firm and authorised to provide MiFID II investment services under the supervision of the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the AMF. SG-FORGE is authorised as an electronic money institution by the ACPR, registered and licensed as a digital asset service provider (DASP), and the issuer of the EUR CoinVertible, a MiCA-compliant stablecoin.