A list of 17 banks are preparing to begin testing live transactions on Swift’s blockchain-based ledger, a step toward 24-hour cross-border payments using tokenized deposits.
Swift said the ledger was ready for use for the first time by banks on six continents in an announcement on Thursday. Its aim is to enable banks to transfer funds for their customers at night and on weekends, before final settlement via existing payment systems.
Participating banks include UBS, BNP Paribas, BNY, Citi, HSBC and Wells Fargo.
Swift, the banking messaging network used by more than 11,500 financial institutions, announced the development of this shared ledger platform in October. He then said this would allow banks to settle transactions involving stablecoins and tokenized assets across multiple blockchains, working alongside current payment rails, without replacing them.
Swift, said the system gives banks a shared layer for token deposits issued on their own ledgers. Tokenized deposits are digital versions of money from commercial banks.
“With our new ledger capability, we extend the trust and stability of established finance to the frontiers of digital currency,” said Thierry Chilosi, Swift’s chief commercial officer.
