Swift Unveils Blockchain Ledger for 24/7 Banking with 17 Global Banks

Swift Introduces New Blockchain Ledger

Swift has announced the rollout of a new blockchain ledger aimed at facilitating 24/7 cross-border banking. This initiative involves collaboration with 17 major financial institutions, including HSBC, UBS, Wells Fargo, and Citi, which are set to pilot live transactions using tokenized digital assets.

Overview of the New System

The blockchain-based ledger is designed to enable banks to conduct transactions around the clock, including overnight and on weekends, prior to the final settlement through existing payment systems. According to Swift, the initial tests will involve banks from six continents, marking a significant step towards utilizing tokenized deposits in international banking.

Key Benefits of the Ledger

With this new platform, banks will have a shared infrastructure for settling transactions that utilize stablecoins and other tokenized assets. Swift explained that tokenized deposits are digital representations of bank money, aimed at enhancing the speed and efficiency of cross-border payments.

Thierry Chilosi, Swift’s chief business officer, emphasized the goal of extending “the trust and stability of established finance into the frontiers of digital money.” The initiative is particularly relevant as banks and fintech companies explore faster alternatives for money transfers worldwide.

Current Payment Efficiency

Swift’s network already boasts efficiency, with around 75% of payments reaching their beneficiary banks within 10 minutes, and often within seconds. The introduction of this blockchain ledger aims to maintain this rapid pace while ensuring regulated digital currencies are consistently available.

This development reflects ongoing trends within the financial sector, where traditional banking institutions are increasingly recognizing the advantages of blockchain technology in enhancing transaction speed and accessibility.