SWIFT Goes Onchain as Consensys Builds Prototype – 30 Banks Eye 24/7 Settlement

Swift, the financial messaging provider, today announced it is working with Consensys and a consortium of global banks to add a blockchain-based shared ledger to its technology stack.

In a press release, Swift said that, unlike its traditional role as a communications network, this move into a shared ledger will allow it to record, sequence, and validate financial transactions directly, creating a backbone for tokenized value exchange between institutions.

Global Banks Join Early Design Phase

Work is currently underway with more than 30 financial institutions worldwide, representing 16 countries. The consortium includes global banks, including names such as JPMorgan Chase, Bank of America, Deutsche Bank, HSBC, BNP Paribas, Standard Chartered, Citi, and Wells Fargo, alongside major regional banks like ANZ, Banco Santander, and Emirates NBD.

Swift said it has engaged Consensys to build the conceptual prototype, which will focus on a first use case: real-time, 24/7 cross-border payments. Feedback from participating banks will shape the system’s architecture and governance.

The announcement was made at the Sibos conference in Frankfurt.

Interoperable Digital Infrastructure

The ledger is seen as a secure, real-time log of transactions, capable of enforcing rules through smart contracts, Swift explains. A key design priority is interoperability—not only across private and public distributed ledger networks, but also with existing fiat rails.

Swift explains that it plans to avoid fragmentation and support the coexistence of central bank digital currencies (CBDCs), tokenized assets, and commercial bank money.

Paving the Way for Digital Transformation

“We provide powerful and effective rails today and are moving at a rapid pace with our community to create the infrastructure stack of the future,” said Swift CEO Javier Pérez-Tasso.

“Through this initial ledger concept, we are paving the way for financial institutions to take the payments experience to the next level with Swift’s proven and trusted platform at the centre of the industry’s digital transformation,” added Pérez-Tasso.

Swift Completes Pilot for Settling Tokenized Funds

Last year, UBS Asset Management, Swift, and Chainlink completed a pilot project allowing the settlement of tokenized fund subscriptions and redemptions using the Swift network.

⛓️ UBS Asset Management, Swift and @Chainlink have completed a pilot project allowing the settlement of tokenized fund subscriptions.
#Chainlink #LINKhttps://t.co/A1Mu1bJO9c

— Cryptonews.com (@cryptonews) November 5, 2024

In an announcement, the firms said the settlement involves using Chainlink’s blockchain technology and allows digital asset transactions to be combined with traditional fiat payment systems.

The pilot was launched under the Monetary Authority of Singapore’s (MAS) Project Guardian, which is looking to explore the use of digital assets in financial markets.