SWIFT is Enhancing Cross-Border Payments with a Blockchain-Based Ledger

SWIFT Ushers in a New Era with Blockchain

SWIFT is making a major innovation in the traditional finance (TradFi) system. A blockchain-based ledger, which it will integrate into its network, will enable 24/7 cross-border payments, based on a prototype developed by Ethereum developer Consensys.

Announcing its plans for the upcoming period, SWIFT stated that this ledger will keep a real-time record of transactions between financial institutions and will sequence and verify transactions. It will also have the ability to enforce its rules with smart contracts.

SWIFT, as a messaging system supporting international banking transactions, is used by over 11,000 financial institutions in more than 200 countries worldwide. In response to goals suggesting it might lose its old function with the adoption of digital assets, especially stablecoins, SWIFT has been experimenting with blockchain technology and tokenization for several years, preparing for this potential change.