SWIFT to Develop Blockchain-Based Ledger for 24/7 Cross-Border Payments

SWIFT is collaborating with over 30 financial institutions to create a blockchain-based ledger aimed at enabling 24/7 cross-border payments. This initiative, based on a prototype developed by Ethereum creators Consensys, will serve as a real-time log of transactions among financial entities, recording, sequencing, and validating transactions while enforcing rules through smart contracts. Despite facing pressure from the rise of digital assets, particularly stablecoins, SWIFT has been exploring blockchain technology and tokenization for several years. The new ledger aims to extend SWIFT's role in financial communications into the digital space, facilitating the regulated movement of tokenized values across digital ecosystems. As a major player in traditional finance, with services utilized by over 11,000 institutions globally, SWIFT's adoption of blockchain technology reflects its efforts to adapt to a changing financial landscape and fend off potential disruptions from emerging digital payment solutions.

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