Here is a detailed article about the news from Business Wire:
ISDA and Ant International Release Groundbreaking Report on Tokenized Bank Liabilities for FX Settlement and Cross-Border Payments
In a significant development for the financial industry, the International Swaps and Derivatives Association (ISDA) and Ant International have jointly released a new industry report. Published on July 3, 2025, at 21:57 CET by Business Wire France, the report delves into the innovative use of tokenized bank liabilities for the settlement of foreign exchange (FX) transactions and the execution of cross-border payments. This initiative is a key component of Project Guardian, a collaborative effort aimed at exploring the potential of decentralized finance (DeFi) and distributed ledger technology (DLT) in wholesale markets.
The report, titled “L’ISDA et Ant International publient un nouveau rapport sectoriel sur l’utilisation des passifs bancaires tokenisés à des fins de règlement des opérations de change et d’exécution de paiements transfrontaliers, dans le cadre du projet Guardian,” signifies a crucial step forward in understanding and potentially operationalizing novel approaches to financial infrastructure. By examining tokenized bank liabilities, the report highlights how these digital representations of traditional financial instruments could streamline and enhance efficiency in critical financial processes.
Tokenization, the process of converting rights to an asset into a digital token on a blockchain or DLT, offers numerous potential benefits. For FX settlement, it could lead to faster transaction times, reduced counterparty risk, and improved operational resilience. Similarly, for cross-border payments, tokenized bank liabilities could facilitate more direct, secure, and potentially lower-cost transfers, bypassing some of the complexities and intermediaries inherent in current systems.
The collaboration between ISDA, a leading global trade organization for the privately negotiated derivatives industry, and Ant International, a key player in digital payment and financial technology services, underscores the growing interest and commitment from established financial institutions and technology innovators to explore the transformative capabilities of DLT. Project Guardian, in which this report is situated, is a testament to this shared vision for a more modern and efficient financial ecosystem.
This report is expected to be of considerable interest to financial institutions, market participants, regulators, and technology providers alike. It offers valuable insights into the practical application of tokenization in wholesale markets and contributes to the ongoing dialogue about the future of financial infrastructure. As the industry continues to navigate the evolving landscape of digital finance, such research and collaborative efforts are vital for fostering innovation while ensuring stability and integrity in global markets.
AI has delivered the news.
The answer to the following question is obtained from Google Gemini.
Business Wire French Language News published ‘L'ISDA et Ant International publient un nouveau rapport sectoriel sur l'utilisation des passifs bancaires tokenisés à des fins de règlement des opérations de change et d'exécution de paiements transfrontaliers, dans le cadre du projet Guardian’ at 2025-07-03 21:57. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.