Swift, the interbank messaging network used by more than 11,500 financial institutions worldwide, has officially rolled out a blockchain-based ledger ready for use by banks across six continents. Its goal is simple yet ambitious: enabling banks to transfer customer funds overnight and over weekends, prior to final settlement through existing payment rails.
Major Names Joining the Pilot
A total of 17 banks are participating in the pilot, including UBS, BNP Paribas, BNY, Citi, HSBC, and Wells Fargo. The ledger provides banks with a shared layer for tokenized deposits - digital representations of commercial bank money issued on each institution’s own ledger. “With these new ledger capabilities, we are extending the trust and stability of established finance to the forefront of digital money,” said Thierry Chilosi, Chief Business Officer at Swift.
Answering the Stablecoin Challenge
The project comes amid a race among banks, payment firms, and crypto companies to test faster ways of moving money across borders. Stablecoin issuers have already pioneered transfers that can settle outside banking hours, although banks cite regulatory controls, compliance, and risk management as reasons to stick with bank-based infrastructure. Swift claims that 75% of payments on its network now reach beneficiary banks within 10 minutes, often in seconds - yet that speed still lags behind stablecoin transfers that can settle anytime without waiting for banking hours. The move by the 17 banking giants shows they are acutely aware that the threat is real, and are racing to build their own rails before corporate clients migrate to more agile alternatives.
Reported by CoinDesk.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
