SWIFT, one of the most important players in the world’s financial infrastructure, announced that it has launched a unique blockchain-based ledger system and pilot program for 24/7 cross-border payments via deposit tokens in collaboration with 17 world banks. This development is noteworthy as it signals that the traditional financial world is beginning to utilize blockchain technology more directly.
According to SWIFT, the pilot program aims to make cross-border payments faster and more efficient 24/7. The system is built on SWIFT’s proprietary blockchain-based ledger system. It aims to enable banks to process international payments via deposit tokens without being bound by traditional working hours.
The 17 banks participating in the project include major institutions from the global financial sector. Participants include major banks such as ANZ, BNP Paribas, BNY, Citi, HSBC, Lloyds Bank, Standard Chartered, UBS, UOB and Wells Fargo. The participation of a bank of this size shows that the SWIFT initiative is not just an experimental technology test, but also preparation for real-world financial use cases.
SWIFT said the infrastructure in question had been developed over the past nine months and was shaped by feedback from international financial institutions following last year’s announcement. The goal of this process was to make blockchain technology compatible with existing banking systems and reduce the time, cost, and operational inefficiencies that occur in international payments.
Experts say SWIFT’s move is a strategic response to increasing competition in the financial sector around stablecoins, tokenized deposits, and on-chain payment solutions. The rollout of SWIFT’s unique distributed ledger infrastructure is considered an important milestone for the future of global payments systems, as traditional payment networks seek to become more agile in the face of blockchain-based alternatives.
*This is not investment advice.
