Swift is embarking on a new venture, creating a blockchain-powered shared ledger for its technological foundation. This move signifies a major expansion for the worldwide payments network, allowing it to handle digital asset settlements.
The organization, headquartered in Brussels, is collaborating with over 30 financial entities from 16 nations to architect the ledger. The initial focus will be on enabling round-the-clock, real-time cross-border payments. Swift is teaming up with Consensys to develop a conceptual prototype. According to a press release issued on Monday, the first phase is expected to be completed swiftly, after which subsequent development stages will be defined.
This ledger initiative builds upon Swift’s prior digital asset trials over the last couple of years. The organization has been actively exploring how distributed ledger technology (DLT) can interact with existing fiat currency systems through a series of pilot projects involving various financial institutions.
The ledger will broaden Swift’s role in financial messaging to encompass digital environments, facilitating the movement of regulated tokenized assets by banks within digital ecosystems. This infrastructure will record, order, and validate transactions while enforcing pre-defined rules through smart contracts, designed to be interoperable with both established and emerging networks.
“We currently offer strong and efficient payment rails, and we are working rapidly with our community to build the future’s infrastructure,” stated Swift CEO Javier Pérez-Tasso at the Sibos conference in Frankfurt, where the initiative was announced. “This initial ledger concept lays the groundwork for financial institutions to revolutionize the payments experience.”
This development marks Swift’s evolution beyond its traditional messaging infrastructure, which currently connects over 11,000 financial institutions spanning more than 200 countries and territories. Rather than dictating which tokens will be exchanged, Swift is concentrating on providing the foundational infrastructure, while commercial and central banks will determine the specific token usage.
Prominent global banks involved in the design coalition include Bank of America, Citi, JP Morgan Chase, HSBC, Deutsche Bank, BNP Paribas, Santander, Standard Chartered, and Wells Fargo. The effort also has substantial Asian representation from DBS, OCBC, UOB, MUFG, Mizuho, and Shinhan Bank.
Singapore’s three leading banks have voiced their support for the infrastructure’s creation. Lim Soon Chong, group head of global transaction services at DBS Bank, underscored the initiative’s defining characteristics: “Swift’s initiative takes a significant step forward – it offers interoperability with traditional correspondent banking systems, boasts a high transaction capacity within a secure environment, and is accessible via Swift’s global banking network. These features are crucial for supporting widespread reach and adoption and hold the potential to become the cornerstone of a resilient and future-proofed global financial infrastructure.”
OCBC’s Melvyn Low, head of global transaction banking, highlighted the efficiency improvements: “By enabling real-time, 24/7 cross-border payments with improved efficiency, transparency, and security, this initiative can unlock more payment opportunities for both retail and corporate clients across Asia.”
UOB’s So Lay Hua, head of group transaction banking, noted the regional implications: “Our participation in this coalition will influence the payments landscape for our clients throughout ASEAN and beyond. The transition to this new regulated digital infrastructure will streamline global payments, supporting tokenized value, optimizing liquidity, and accelerating settlement times.”
In addition to the ledger development, Swift announced the forthcoming rollout of client solutions designed to orchestrate different systems, supporting both private and public networks. This will facilitate efficient and synchronized transactions across a variety of use cases. This capability is aimed at ensuring interoperability between DLT and traditional payment infrastructure.
This dual-track approach reflects Swift’s overall strategy to upgrade existing fiat systems while simultaneously building infrastructure for the future of digital finance. Just last week, Swift also unveiled revised scheme rules for existing rails, with the aim of providing faster and more predictable cross-border payment experiences for consumers and small businesses.
The blockchain-based ledger will uphold the levels of trust, resilience, and regulatory compliance that are hallmarks of Swift’s existing infrastructure, which are deemed essential to the stability of the global financial system. The platform will be engineered for regulatory compliance and institutional-grade security from its inception.
Swift’s neutrality as an industry infrastructure provider distinguishes it from commercial blockchain networks managed by individual banks or consortia. The organization’s global reach and existing relationships with central banks and regulators give it an edge in establishing widely accepted standards.
The initiative comes as traditional financial institutions are increasingly exploring asset tokenization and digital settlement mechanisms. Central bank digital currencies (CBDCs), stablecoins, and tokenized securities are gaining traction, fueling the demand for interoperable infrastructure connecting these emerging digital asset classes with traditional finance.
Following successful prototype development and proof of concept, Swift has indicated that it will collaborate with its global community on implementation timelines and rollout strategies. However, the organization has not yet announced a target launch date for production deployment.
The ledger’s development has the potential to accelerate the institutional adoption of tokenized assets by providing a familiar and trusted infrastructure for digital settlement. The banks participating in the design phase will play a crucial role in ensuring that the platform meets institutional requirements for risk management, compliance, and operational integration.