Hassan Maishera
TL;DR
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Swift has launched a blockchain-based shared ledger for live cross-border payment pilots using tokenized bank deposits.
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Seventeen major banks, including Citi, HSBC, UBS, BNP Paribas, Standard Chartered, Wells Fargo, BNY, DBS, and MUFG Bank, are participating.
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The platform enables 24/7 cross-border fund transfers while settling through existing banking infrastructure.
Global financial messaging network Swift has launched a blockchain-powered shared ledger that will enable 17 leading international banks to pilot cross-border payments using tokenized deposits.
The initiative marks Swift's first live implementation of blockchain technology for tokenized banking transactions and represents a significant step toward modernizing international payment infrastructure without replacing existing settlement systems.
Global Banks Join Tokenized Deposit Pilot
While announcing this, Swift said the pilot brings together major financial institutions from six continents, including Citi, HSBC, UBS, BNP Paribas, Standard Chartered, Wells Fargo, BNY, DBS, and MUFG Bank.
Several additional global banking institutions are also participating in the program as Swift evaluates how tokenized deposits can improve international payments.
According to Swift, the new blockchain-based shared ledger acts as an orchestration layer that connects tokenized deposits issued by participating banks.
The platform allows institutions to transfer customer funds at any time—including overnight, on weekends, and outside traditional banking hours—before completing final settlement through existing payment infrastructure.
By integrating with current banking systems rather than replacing them, Swift aims to provide faster and more flexible cross-border payments while preserving the reliability of established financial networks.
Existing Compliance Frameworks Remain Intact
Swift emphasized that the shared ledger has been designed to work alongside current banking processes.
The company said the platform maintains existing standards for regulatory compliance, credit risk management, operational controls, and payment security.
At the same time, the system is expected to improve liquidity management and deliver a better payment experience for institutional and corporate customers by enabling continuous transaction processing.
Swift first introduced the blockchain-based shared ledger concept last year, noting that the platform was designed and developed in just nine months with input from international financial institutions.
The organization believes the pilot will establish the foundation for broader interoperability across financial networks while supporting future innovations such as programmable money, tokenized financial assets, agentic commerce powered by artificial intelligence, and digital asset interoperability.
These capabilities are expected to play an increasingly important role as banks continue exploring tokenization and blockchain-based financial services.
Swift Expands Its Tokenized Finance Strategy
The latest pilot builds on Swift's growing involvement in tokenized finance. Last September, Chainlink expanded its collaboration with Swift by integrating the payment network's ISO 20022 messaging standard with the Chainlink Runtime Environment during a live pilot involving UBS Tokenize.
The initiative demonstrated how institutions could process tokenized fund subscriptions and redemptions through their existing banking infrastructure without requiring major operational changes.
By extending blockchain interoperability while leveraging its global payments network, Swift aims to help financial institutions adopt tokenized assets without disrupting established settlement and messaging systems.
As tokenized deposits gain traction, Swift's latest pilot demonstrates how traditional financial institutions can incorporate blockchain technology into existing payment workflows rather than replacing them entirely.
If successful, the initiative could pave the way for faster, always-on cross-border payments while creating a bridge between traditional banking infrastructure and the emerging digital asset ecosystem.
With more than 11,500 financial institutions across over 200 countries and territories relying on its messaging network, Swift's move into live blockchain-based settlement could accelerate institutional adoption of tokenized finance worldwide.
