SWIFT, the global financial messaging system used by banks, announced plans to build a common blockchain ledger, which will facilitate faster, always-on, and more efficient cross-border payments.
According to the official announcement, the initial variant, created in collaboration with blockchain company Consensys. More than 30 major financial institutions, including JPMorgan Chase, HSBC, Bank of America, Deutsche Bank, Citi, Standard Chartered, BNP Paribas, Banco Santander, ANZ, MUFG, Wells Fargo, and NatWest, are working with SWIFT to design and build the system.
How the ledger will work
The ledger will function as a secure, real-time log of transactions between financial institutions. It will validate and order payments, and use smart contracts to apply rules automatically.
It is made to operate both with current payment systems and new digital networks, following the compliance standards of global finance. The announcement also noted that the types of tokens exchanged on the ledger will be determined by commercial and central banks, with SWIFT supporting their integration into the infrastructure.
SWIFT’s CEO, Javier Pérez-Tasso, said the project is part of a wider effort to modernize financial infrastructure. “We provide powerful and effective rails today and are moving at a rapid pace with our community to create the infrastructure stack of the future,” he said.
The shared ledger builds on SWIFT’s earlier experiments with digital assets and blockchain pilots. Financial institutions from 16 countries will be providing input, and SWIFT intends to implement the system after developing the prototype and fully testing it.
The development comes amid increasing interest among banks in applying blockchain to simplify payments, enhance efficiency, and prepare for a future where digital finance plays a central role.
Also Read: SWIFT to Test On-Chain System on Linea Blockchain
