SWIFT and Global Banks Push Ahead With Blockchain Ledger for Instant Payments

Global financial messaging giant SWIFT, together with more than 30 leading international banks, announced this week that they are now working “at pace” to make cross-border payments instantaneous, while also developing a system capable of supporting the many new forms of digital money.

SWIFT, which remains a central pillar of the global financial infrastructure, confirmed that the institutions are collaborating on a blockchain-based “shared digital ledger” they believe will be essential in modernising international bank transfers. While no definitive timeline has yet been provided, the first priority is to establish real-time, 24/7 cross-border payment capability. Such a change would not only bring speed but also reduce costs in a process that currently can take days.

The Belgium-headquartered network intends to expand on its recent pilot programmes by ensuring its systems can become “interoperable” with new payment rails now being built for stablecoins, tokenised bank deposits, and central bank digital currencies (CBDCs). Some of the most ambitious projects in this space are being spearheaded by China and the European Central Bank, and SWIFT sees its ability to connect with these initiatives as critical to its future.

The organisation’s strongest asset remains its reach: its infrastructure is already active in more than 200 countries, connecting over 11,000 banks, which rely on it daily to move trillions of dollars across borders.

Despite this dominant position, the network has not been immune to criticism. US President Donald Trump’s son, Eric Trump, a vocal crypto advocate, recently described SWIFT as “antiquated.” In response, the cooperative is betting that by integrating blockchain capabilities it can reinvent itself, maintaining the compliance safeguards and resilience features that traditional banks continue to demand.

The urgency of this push comes against the backdrop of a rapidly shifting financial landscape. Stablecoins, once considered a fringe component of the crypto ecosystem, are quickly moving into mainstream use. A report published last week by Citi projected that up to $4 trillion worth of stablecoins could be in circulation by 2030, facilitating as much as $100 trillion in annual trade.

At the same time, central banks worldwide are racing to avoid being left behind. Approximately 90 per cent of them are now exploring the possibility of issuing digital versions of their national currencies, with many conducting advanced pilots or research into potential deployment.

SWIFT has outlined its vision for the new shared digital ledger as a secure, real-time log of transactions between banks that would “record, sequence and validate transactions and enforce rules through smart contracts.”

The consortium of more than 30 global financial institutions committed to shaping and building this new system includes JPMorgan, HSBC, Deutsche Bank, MUFG, BNP Paribas, Santander, and OCBC, alongside a number of banks based in the Middle East and Africa. Together with SWIFT, these institutions are preparing to design a platform they believe can carry the banking sector into the digital future, while maintaining the trust and standards that underpin the international financial system.

By fLEXI tEAM