Share this article
Swift's Cross-Border Blockchain Trial Is Moving Into Its Next Phase
Swift has completed development work on its first blockchain proof-of-concept, and six global banks are about to put it through its paces.
Updated Sep 13, 2021, 6:50 a.m. Published Aug 21, 2017, 12:00 p.m.
Make us preferred on Google
Swift is one step closer to adopting blockchain.
After months of work, a team of developers at the inter-bank payments platform have completed a proof-of-concept built with the Hyperledger Fabric blockchain. Designed to test whether moving member bank accounts to a distributed ledger could help Swift reconcile in real time, the project is now ready for its next phase.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
According to Damien Vanderveken, head of Swift's distributed ledger technology R&D effort, Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon, DBS Bank, RBC Royal Bank and Wells Fargo have now been given access to the platform for further testing.
If successful, Swift believes the tests could free up billions of dollars in dormant funds in banks' nostro accounts, which are set up all over the world to hold various currencies just in case they're needed for transactions. By moving the funds to a shared ledger, the test is seeking to confirm whether that practice can be eliminated, freeing up the capital to be invested in other ventures.
Going forward, the founding banks are expected to complete their work next month, at which time the results will be validated by an additional 22 banks, including ABN Amro, Deutsche Bank, JPMorgan Chase and Standard Chartered.
Skepticism remains
While a small update, news that the test is moving forward nonetheless has notable implications for both Swift and blockchain adoption in banking more broadly.
For one, even in spite of multiple blockchain efforts in various stages of development at Swift, the organization remains publicly skeptical of the technology.
This has been especially true as it relates to real-time payments, where Swift is expanding its services using traditional payment rails even while startup Ripple takes aim at financial incumbents with its distributed ledger model for instant payments.
Here, Vanderveken echoed Swift's customarily incredulous tone, concluding that such developments aren't necessarily prompting concern in the organization.
Vanderveken concluded:
"Blockchain is very hyped, that is for sure, and whether blockchain drives innovation, I think it only drives innovation in payments. But does it drive it for instant payments? I wouldn’t say so."
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Ripple.
Planes in formation image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Gold tops $5,000 as bitcoin stalls near $87,000 in widening macro-crypto split: Asia Morning Briefing
Bitcoin’s onchain data points to supply overhang and weak participation, while gold’s breakout is priced by markets as a durable macro regime shift.
What to know:
- Gold’s surge above $5,000 an ounce is increasingly seen as a durable regime shift, with investors treating the metal as a persistent hedge against geopolitical risk, central bank demand and a weaker dollar.
- Bitcoin is stuck near $87,000 in a low-conviction market, as on-chain data show older holders selling into rallies, newer buyers absorbing losses and a heavy supply overhang capping moves toward $100,000.
- Derivatives and prediction markets point to continued consolidation in bitcoin and sustained strength in gold, with thin futures volumes, subdued leverage and weak demand for higher-beta crypto assets like ether reinforcing the cautious tone.
Top Stories
