Swift is preparing to test a blockchain based shared ledger with 17 major financial institutions to enable 24/7 cross border payments using tokenized deposits.
Swift has unveiled a new initiative that combines traditional banking infrastructure with digital asset technology. A group of 17 global banks, including Citi, HSBC, Wells Fargo and UBS, will test a shared blockchain based ledger designed to facilitate cross border payments around the clock through tokenized deposits. The project, spanning six continents, aims to eliminate banking hour limitations for international transactions.
Tokenization enters mainstream banking The new system will allow customers to send international transfers at any time, including weekends and outside regular banking hours. While the blockchain based ledger manages transaction processes, final settlement will continue to take place through existing payment infrastructure. This approach enables banks to preserve the reliability of traditional financial systems while benefiting from the speed and continuous availability offered by digital asset technology.
Swift's shared ledger provides a secure infrastructure for tokenized deposits issued by participating banks. These digital representations of commercial bank money are designed to deliver faster transfers within a regulated banking framework. With most payments on the Swift network already completed within 10 minutes, the new platform seeks to combine that efficiency with 24/7 availability by integrating blockchain technology into existing banking systems rather than replacing them.
