Swift’s Game-Changing Plan: Introducing a Blockchain-Based Ledger for Seamless Global Finance
Swift’s Game-Changing Plan: Introducing a for Seamless Global Finance
Imagine a world where sending money across borders happens in seconds, 24/7, without delays or high fees. That’s the promise of Swift’s latest move. The global payment giant is set to add a blockchain-based ledger to its system. This comes after a successful trial with big banks on tokenized bonds. It’s a big step toward linking old-school finance with new blockchain tech.
What Happened in the Latest Trial?
Swift teamed up with BNP Paribas Securities Services, Intesa Sanpaolo, and Societe Generale’s blockchain arm, FORGE. They ran a trial on digital asset trades. The goal? Make it easy to swap and settle tokenized bonds using both regular money and digital currencies.
Key parts of the test included:
- Delivery-versus-payment (DvP): Trade assets and pay at the same time to cut risk.
- Interest payouts: Send bond interest smoothly.
- Redemption: Handle bond maturity events.
Banks played roles like paying agent, custodian, and registrar. For the first time, Swift showed it can run these steps as one smooth process across blockchains and old systems. They used SG-FORGE’s digital assets and EURCV stablecoin for settlements in fiat or stablecoins.
BNP Paribas and Intesa Sanpaolo handled paying and custody duties. All flows went through Swift’s network, proving tokenized bonds can use current setups without dealing with blockchain headaches.
Why This Matters: Fighting Fragmentation in Tokenized Assets
The finance world loves tokenization. It turns bonds, stocks, commodities, real estate, and more into digital tokens on blockchains. But problems arise:
- Too many blockchains create “digital islands.”
- Proprietary systems trap money and slow trades.
- Inefficiencies block growth.
Swift steps in as a neutral bridge. It connects old payment rails with new digital worlds. By using standards like ISO 20022 and ISO 15022, plus market rules, it unlocks scale.
This trial integrated ISO 20022 messages with blockchains, making workflows safe and rule-friendly.
“This milestone shows how collaboration and interoperability will shape capital markets. Swift can now handle multi-platform tokenized asset deals, helping members adopt digital assets with confidence and at scale. It’s a bridge between traditional finance and new tech,” said Thomas Dugauquier, Tokenised Assets Product Lead at Swift.
Swift’s Track Record in Blockchain Trials
This isn’t Swift’s first rodeo. Past tests include:
- Linking tokenized assets to payments with UBS Asset Management and Chainlink.
- Fiat-to-digital settlements with Citi.
- Digital trades via bank accounts with Northern Trust and Australia’s central bank.
- ISO 20022 blockchain links with HSBC and Ant International.
These wins prove Swift’s network can handle tokenized assets and currencies safely using what it already has.
The Big News: A Coming Soon
With trials done, Swift is adding a blockchain-based ledger to its tech stack. First focus: real-time, 24/7 cross-border payments. Over 30 banks worldwide helped design it.
This ledger will:
- Act as a shared execution layer.
- Sync actions, timing, and results for all parties.
- Turn simple connections into surefire trades.
It builds on Swift’s messaging and APIs, adding resilience, compliance, and blockchain flexibility. In a world full of new assets and platforms, it drives interoperability aligned with G20 payment goals.
Swift also proposed new guidelines to the Securities Market Practice Group (SMPG). These embed best practices to ease onboarding and keep things stable.
How This Changes Cross-Border Payments
Today, cross-border payments are slow and costly. Banks wait days, fees add up, and weekends halt everything. A blockchain ledger fixes this:
| Current System | With Swift Ledger |
|---|---|
| Slow settlements (days) | Real-time, 24/7 |
| High fees and risks | Low-cost, secure DvP |
| Limited to fiat | Fiat + digital currencies |
| Fragmented networks | Seamless interoperability |
Institutions get frictionless trades built on Swift’s trusted base.
Broader Impact on Crypto and Finance
This bridges TradFi and crypto. Tokenized assets grow fast, but without connectors like Swift, they stay siloed. The ledger creates a trusted space for trades across networks, assets, and currencies.
For crypto users, it means more real-world use. Stablecoins like EURCV settle bonds. Banks adopt without rebuilding everything.
It supports G20 aims: cheaper, faster, more inclusive payments. No shared ledger means no coordinated digital trades across big players.
What’s Next for Swift and Blockchain?
Swift’s ledger is the base for digital finance 2.0. Designed with global banks, it scales tokenized everything. Expect pilots, more partners, and full rollout soon.
Challenges remain: regulation, tech standards, adoption. But Swift’s neutral role and history build trust.
Watch for updates. This could spark a wave of blockchain in mainstream finance.
Final Thoughts
Swift’s push for a
Stay tuned for more on how blockchain reshapes money.
