Swift and Banks Collaborate on Blockchain Shared Ledger

Swift, collaborating with over 30 global banks, announced on December 19 collaboration to develop a blockchain-based ledger system aimed at enhancing digital asset infrastructure and cross-border payment efficiency.

This initiative seeks to improve financial interoperability and operational efficiency, potentially reshaping the digital finance landscape by bridging traditional and tokenized value transfer through regulated frameworks.

Swift-Bank Blockchain Collaboration Transforms Payment Systems

Swift partners with banks like JPMorgan, HSBC, and Wells Fargo, aiming to innovate with a blockchain-based shared ledger. Javier Pérez-Tasso, Swift CEO, noted:

Swift is integrating a blockchain-based solution with its messaging, APIs, and ISO 20022 standards. This system targets real-time cross-border payments, aiming for efficiency and security improvements. Consensys provides the blockchain technology underpinning this prototype initiative.

“Combining a shared ledger with Swift’s existing messaging, APIs and ISO 20022 creates an even more powerful construct – one that can embed risk, controls and compliance requirements from the outset into transaction flows while enabling real-time 24/7 interbank cross-border payments with the same trust, security, resilience, scalability and operational excellence Swift is known for.”

Industry leaders expressed support, with Ather Williams III from Wells Fargo stating alignment with global standards. Eva Rubio from BBVA emphasized the potential for real-time settlement. These endorsements highlight the financial sector’s readiness to embrace new technologies.

Blockchain Integration Signals Shift in Financial Compliance

Did you know? Swift’s initiative follows their ongoing digital asset trials, echoing past efforts like their solutions for sanctions compliance, showcasing its role in digital finance evolution.

According to CoinMarketCap data, Bitcoin (BTC) is priced at $88,011.50 with a market cap of $1.76 trillion and market dominance of 59.16%. Over the past 90 days, it has decreased by 24.11%, with a 24-hour trading volume of $57.68 billion.

Coincu’s research team notes that the incorporation of blockchain by Swift could lead to enhanced compliance frameworks. This initiative also highlights the industry’s broader trend towards intersecting blockchain technology with traditional financial operations, fostering regulatory confidence.