Swift partners with Consensys to build blockchain settlement system

The Swift interbank communication network is collaborating with Consensys to develop a blockchain settlement system in partnership with over 30 financial institutions. This initiative aims to create infrastructure for real-time transactions, enhancing compliance with existing and emerging networks. Consensys will develop an initial conceptual prototype, which is expected to extend Swift's role into the digital asset realm, facilitating the exchange of tokenized assets as determined by central and commercial banks. The new blockchain infrastructure will serve as a secure log of financial transactions, further solidifying Swift's critical role in the international payment ecosystem, which is relied upon by over 11,500 institutions globally. Swift acknowledges the challenges posed by shared ledgers in handling large volumes of data, hence the importance of maintaining its messaging layer. Historically, Swift has engaged in blockchain initiatives, including integrating tokenized fund processes with fiat systems and exploring unified access to various digital asset classes. Their ongoing development illustrates a shift in traditional finance towards adopting blockchain technologies.

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