Swift has initiated a blockchain-based ledger pilot with 17 global banks, including HSBC and Citi, to enable 24/7 cross-border transactions using tokenised deposits. This effort aims to improve international payment efficiency while keeping funds under the control of regulated institutions.
Global financial messaging network Swift has transitioned its blockchain-based ledger from development to a controlled, live pilot phase. Seventeen major financial institutions, spanning six continents, are now using the platform to conduct real-world cross-border transactions. The pilot features a roster of international banks including HSBC, Citi, BNP Paribas, DBS, Standard Chartered, UBS, Wells Fargo, ANZ, MUFG Bank, and Lloyds Bank.
Enabling Around-the-Clock Settlements
A primary goal of this platform is to remove the constraints of traditional banking hours, which often delay international fund transfers. By using a blockchain ledger, Swift intends to support 24/7 payment capability, allowing for transactions on weekends and during overnight windows. While the ledger facilitates the movement of value, final settlement continues to rely on existing, proven payment infrastructure, ensuring that the new technology operates as a layer on top of established banking systems rather than a standalone replacement.
Understanding Tokenised Deposits
The platform relies on tokenised deposits, which are digital versions of standard bank deposits managed on a blockchain. Because these tokens represent direct liabilities of the issuing banks, they function differently from cryptocurrencies or volatile digital assets. For investors and financial observers, this distinction is important because it keeps the assets within the traditional, highly regulated banking framework. The technology updates the way ownership is tracked and moved between institutions, which is intended to reduce administrative friction and improve how banks manage their liquidity across borders.
Context and Future Monitorables
Swift has stated that the platform was developed over a period of nine months. It is positioned as an expansion of its current network, which already delivers approximately 75% of payments to beneficiaries within minutes. The core challenge for the industry and for Swift will be scaling this from a 17-bank pilot to a broader, global implementation. Investors looking at the banking and financial technology sectors may track whether this pilot leads to lower operating costs for participating banks or allows them to capture more transaction volume by offering faster, more flexible services to their corporate and institutional clients. The next steps for the project will likely involve evaluating the performance of these transactions under different regulatory environments and assessing the ease of integrating the ledger into the diverse core banking systems used by its global member network.