Swift to add blockchain ledger to global payments network

Swift has announced plans to integrate a blockchain-based ledger into its financial messaging infrastructure to enhance settlement processes across 200 countries. This initiative, revealed at the Sibos conference in Frankfurt, has garnered support from over 30 financial institutions in 16 countries. The first phase focuses on creating a conceptual prototype in collaboration with Ethereum developer Consensys, with aspirations for real-time, 24/7 cross-border payments. The new project aims to handle various forms of tokenized value, leaving the definition of specific token types—like CBDCs and securities—to banks. Major banks such as Bank of America, Citi, HSBC, Deutsche Bank, and BNP Paribas view this as a significant modernization step. Swift's strategy involves upgrading traditional fiat payment rails alongside preparing infrastructure for a digital asset ecosystem. The organization has not yet provided a timeline for the subsequent phases of the ledger project, which will progress after completing the prototype and will involve pilot testing in selected areas.

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