Swift launched a blockchain-based shared ledger enabling 17 banks across six continents to pilot cross-border payments using tokenized deposits, the payment network announced Thursday. Participants include Citi, HSBC, UBS, BNP Paribas, Standard Chartered, Wells Fargo, BNY, DBS, and MUFG Bank. The ledger serves as an orchestration layer for bank-issued tokenized deposits, allowing institutions to transfer funds around the clock before completing final settlement through existing systems, preserving compliance and risk standards while improving liquidity efficiency and client experience. The rollout builds on Swift's broader push into tokenized finance, following a September collaboration with Chainlink and UBS Tokenize that enabled tokenized fund workflows through institutions' existing systems.
Swift Ledger Enables 24/7 Tokenized Deposit Transfers for 17 Banks
The shared ledger functions as an orchestration layer for bank-issued tokenized deposits, according to Swift's statement. Participating institutions can transfer funds for customers around the clock, including overnight and on weekends, before completing final settlement through existing systems. Swift said the approach preserves the compliance, credit, risk, and control standards embedded in current payment processing while improving liquidity efficiency and client experience.
Swift unveiled the blockchain-based ledger last year and said it was designed and built in nine months with feedback from international financial institutions. The payment network said the pilot lays the groundwork for broader interoperability and future applications, including programmable money and agentic commerce. The Belgium-based cooperative provides secure financial messaging services to more than 11,500 banking and securities organizations, market infrastructures, and corporate customers across more than 200 countries and territories.
Swift Expands Tokenized Finance Initiatives with Chainlink Collaboration
Last September, Chainlink expanded its collaboration with Swift by integrating the payment network's ISO 20022 messaging infrastructure with the Chainlink Runtime Environment in a live pilot with UBS Tokenize. The integration enabled tokenized fund subscription and redemption workflows through institutions' existing systems.
FAQ
What did Swift launch on Thursday?
Swift launched a blockchain-based shared ledger that allows 17 banks across six continents to pilot cross-border payments using tokenized deposits. Participants include Citi, HSBC, UBS, BNP Paribas, Standard Chartered, Wells Fargo, BNY, DBS, and MUFG Bank.
How does Swift's blockchain ledger function?
The shared ledger serves as an orchestration layer for bank-issued tokenized deposits, allowing participating institutions to transfer funds for customers around the clock, including overnight and on weekends, before completing final settlement through existing systems. Swift said the approach preserves compliance, credit, risk, and control standards while improving liquidity efficiency and client experience.
What prior tokenized finance collaboration did Swift conduct?
Last September, Chainlink integrated Swift's ISO 20022 messaging infrastructure with the Chainlink Runtime Environment in a live pilot with UBS Tokenize, enabling tokenized fund subscription and redemption workflows through institutions' existing systems.
