SWIFT, the global payments messaging system used by over 11,000 financial institutions across more than 200 countries, announced plans to develop a blockchain-based ledger that could enable round-the-clock cross-border payments.
The initiative is being built in collaboration with over 30 financial institutions, using a prototype developed by Ethereum-focused Consensys.
Extending Traditional Finance into the Digital Realm
“The ledger will extend SWIFT's financial communication role into a digital environment, facilitating banks' movement of regulated tokenized value across digital ecosystems,” the company said in its announcement.
The project aims to provide a real-time log of transactions between financial institutions, record sequencing and validation, and enforce rules through smart contracts.
SWIFT’s adoption of blockchain technology reflects a broader effort to remain relevant amid growing interest in digital assets and stablecoins. Over the past several years, the organization has experimented with tokenization and distributed ledger technology to prepare for potential disruption from alternative payment systems.
By integrating a blockchain-based ledger, SWIFT seeks to offer continuous transaction settlement, improve transparency, and enhance security. Smart contracts will automate verification processes, reducing reliance on manual reconciliation and decreasing the risk of errors.
SWIFT emphasized that the rollout will be phased, allowing for careful monitoring and adjustment to ensure compliance with regulatory standards.
Why blockchain matters for cross-border payments
Cross-border transactions have long been constrained by banking hours, delays, and high fees.
Stablecoins, central bank digital currencies (CBDCs), and blockchain-based payment platforms are challenging legacy networks to offer faster, more efficient services.
In just over five years, Stablecoins total supply has surged from $5 billion to more than $220 billion.
Transaction volume reached $32 trillion in 2024 alone, with payments-related use cases accounting for roughly $6 trillion, about 3 percent of the $195 trillion global cross-border payments market. Initiatives include Visa’s Tokenized Asset Platform and Mastercard initiatives, even Bank of America’s plans for its own stablecoin, reflecting the growing integration of blockchain technology in mainstream finance.
Market Context and institutional trends
Announcing the ledger at Swift’s annual flagship Sibos conference in Frankfurt today, Swift CEO Javier Pérez-Tasso:
“We provide powerful and effective rails today and are moving at a rapid pace with our community to create the infrastructure stack of the future. Through this initial ledger concept we are paving the way for financial institutions to take the payments experience to the next level with Swift’s proven and trusted platform at the centre of the industry’s digital transformation.”
The announcement comes as traditional financial systems face increased competition from fintech solutions and decentralized finance.
Ripple, for example, launched RippleNet several years ago, allowing over 100 financial institutions to use distributed ledger technology for faster and cheaper settlements. Its suite of tools, including xCurrent, xRapid, and xVia, has enabled banks to streamline international payments, demonstrating how blockchain solutions can complement traditional financial infrastructure.
And Stripe, recently launched its “Tempo” initiative, a Layer-1 blockchain aimed at streamlining crypto and stablecoin payments.
Looking ahead
SWIFT has not announced specific deployment timelines, this initiative marks a significant step in integrating blockchain into mainstream financial infrastructure.
If successful, it could set new standards for transparency, efficiency, and accessibility in cross-border payments, providing banks and corporate clients with a faster, more reliable alternative to traditional payment rails.
Jordan V.
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