The world’s leading financial messaging network is developing blockchain infrastructure with dozens of major banks to modernize cross-border payments, with the possibility to conduct these payments in real-time.
Image credit: Unsplash
SWIFT announced Monday it’s working with over 30 global financial institutions on a shared digital ledger to revolutionize international money transfers. The system aims to eliminate multi-day settlement delays that plague current transactions.
The blockchain platform will operate 24/7, processing payments instantly while reducing costs. No launch date has been set, but speed is the initial priority.
Belgium-based SWIFT plans to make its infrastructure compatible with emerging digital currencies, including stablecoins, tokenized deposits, and central bank digital currencies being developed by the European Central Bank and Chinese regulators.
SWIFT’s network spans 200+ countries and connects over 11,000 banks processing trillions daily. This existing reach provides a major advantage over newer payment systems.
Eric Trump recently called SWIFT “antiquated,” but the organization believes blockchain integration will maintain its relevance while delivering required compliance and security features.
The timing is strategic. Citi projected last week that stablecoins could reach $4 trillion in circulation by 2030, facilitating $100 trillion in annual transactions.
Meanwhile, 90% of central banks worldwide are researching digital versions of their currencies.
The shared digital ledger will “record, sequence and validate transactions and enforce rules through smart contracts,” functioning as a secure, real-time transaction log between banks.
The consortium includes JPMorgan, HSBC, Deutsche Bank, MUFG, BNP Paribas, Santander, OCBC, and several Middle Eastern and African banks.