Swift announced on Thursday that its new blockchain ledger, designed to handle tokenized money, is ready for initial use, marking a shift toward 24‑hour cross‑border payments.
Tokenized deposits to power nonstop settlements
The ledger will let banks move digital equivalents of fiat currency at any hour, including weekends. Tokens are issued by the banks themselves and represent deposits on each institution’s own ledger, the network said.
Settlement will continue to rely on existing processes, meaning compliance, credit, risk and control rules stay in place. Swift stresses that the approach does not replace current systems but works alongside them.
“The strong support from banks shows the practical value of this approach — one that will help scale benefits globally while creating a foundation for future innovation in areas like programmable money and agentic commerce,” said Thierry Chilosi, Swift’s chief business officer.
Pilot program spans continents
A pilot involving 17 banks across six continents is being prepared. Participants include major U.S. institutions such as BNY Mellon, Citi and Wells Fargo. The network described the interest as “strong global demand” for faster money movement, though it did not disclose a start date.
Founded in 1973, Swift processes the equivalent of world GDP every two to three days. Its existing messaging system gets three‑quarters of payments to receiving banks within ten minutes, often in seconds. The new token‑based ledger aims to extend that speed to any time of day.
While the pilot is still being arranged, the plan is to test the end‑to‑end flow of token creation, transfer and settlement. Banks will use the tokens as a bridge, converting them back to traditional currency on the receiving side.
In practice, a client in Tokyo could send a tokenized euro at midnight, and the recipient in São Paulo could receive the funds on the same day, subject to the usual compliance checks.
That capability could be especially useful for industries that operate around the clock, such as airlines or global supply chains.
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One subtle issue is the need for all participating banks to maintain synchronized ledgers, which may add complexity to back‑office operations. The pilot will likely reveal how much effort is required to keep the system aligned.
Despite the technical challenges, the move reflects a broader trend of financial institutions experimenting with blockchain‑based solutions. The ledger builds on earlier work on distributed‑ledger prototypes that began last year.
For newcomers, the significance lies in the potential to reduce reliance on traditional clearing houses that operate only during business hours. By tokenizing deposits, banks can effectively “store” value on a shared platform, enabling instant transfers without waiting for night‑time batch processes.
Future outlook and industry response
Swift has not detailed a timeline for wider rollout beyond the pilot, but the organization indicated that the initiative could lay groundwork for “future innovation in areas like programmable money.”
Industry observers note that the ability to move tokenized fiat across borders could influence the development of digital currencies issued by central banks, though Swift has not linked the ledger to any specific CBDC project.
Regulators have been consulted, and the network says the new service will adhere to existing monetary‑policy frameworks. No changes to legal definitions of money are expected at this stage.
As the pilot progresses, banks will assess whether the token model delivers cost savings or operational efficiencies compared with current correspondent‑bank arrangements. If successful, the ledger could become a standard option for banks seeking to offer nonstop payment services.
Swift’s announcement highlights its ongoing investment in payment‑technology research, a field that has seen increasing competition from fintech startups and blockchain platforms.
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