Tokenisation Could Ease Liquidity Bottlenecks in Next Phase of Cross-Border Payments
Financial industry experts point out that asset tokenisation technology is expected to address liquidity bottleneck issues in cross-border payments. While most SWIFT cross-border payments currently reach the receiving bank within 10 minutes, delays in the 'last mile' settlements remain a major barrier to enhancing user experience.
What are the key facts?
- 1Core technology: Asset tokenisation
- 2Industry challenge: Liquidity bottlenecks in cross-border payments
- 3Current situation: 75% of SWIFT payments can arrive within 10 minutes
What happened?
In cross-border payments, liquidity has become a primary challenge. Industry experts at a seminar indicated that tokenisation technology provides banks with a more efficient way to secure trading funds. Currently, around 75% of SWIFT cross-border payments can arrive within 10 minutes, but domestic 'last mile' settlement delays need to be resolved through infrastructure upgrades.
What does this mean for cross-border sellers?
As cross-border payment efficiency improves, sellers can expect faster capital recovery in the future; it's advisable to focus on payment channels that support new settlement technologies.