SNB’s Jordan Touts Different Options for Tokenization Settlement

The Swiss National Bank is investigating alternatives to its pilot project of a central-bank digital currency for banks, according to President Thomas Jordan.

The institution’s so-called wholesale CBDC, which operates on the infrastructure of Swiss stock-market provider SIX, allows banks to employ tokenized central-bank money to settle transactions like buying bonds on the same platform. This eliminates credit risk and allows users to take advantage of digital assets, which could offer features like programmability.

Speaking on Monday at a Bank for International Settlements conference in Basel, Jordan outlined two other approaches to transaction settlement with tokenized assets that the ...